Accounts payable (AP) is a crucial aspect of any business, as it involves the process of paying bills and invoices to suppliers and vendors. While AP is a necessary task, it also presents a number of risks that can negatively impact a company's financial health and reputation.By implementing strict internal controls and conducting regular audits companies can mitigate these risks and ensure that their AP process is efficient and effective.
 
What is an Audit Program?
An audit program is a collection of audit procedures designed to assess whether an organization complies with regulatory requirements and industry best practices. Also known as an audit plan, an audit program should be tailored to the organization’s specific needs, taking into account the business’s size, complexity, and risk profile. 
 
Our audit program typically includes four components: 
Audit scope: This defines what will be covered in the audit, including the timeframe, geographical area, business units, and processes that will be examined.
Audit objectives: This outlines what the audit is trying to achieve, such as identifying compliance risks, assessing controls, and testing transactions.
Audit criteria: This specifies the standards used to assess compliance, such as laws, regulations, and company policies.
Audit procedures: This details the steps to collect evidence and information during the audit.
 
Why Does an Audit Program Matter?
 
An audit program is important because it helps to ensure that an organization’s compliance management system is effective. Without an audit program, it can be difficult to identify compliance risks and assess the effectiveness of controls.
Additionally, an audit program can help evaluate the effectiveness of an organization’s compliance training program. These procedures will help you evaluate if your company's compliance efforts are aligned with your business goals.