Cook the Books and Book the Ledgers - Part 7

 

The pursuit of splitting of financial transactions to circumvent internal approval limits within any system is a much sought after Red-Flag test in IDEA.

 

Be it Ordering, Vendor Bill Passing, Cash Spends, Claim Management and more, all these areas serve ripe for the popular Potential Splitting Test.

 

The genesis of a Potential Splitting Test is where the incumbent breaks up a supposed single value entry (which expressly crossed the threshold limit) into smaller equal or non-equal value sub-entries to skim or circumvent the threshold limit.

 

So to experience this Test first hand, let us take the example of Multiple Vendor Bills booked against a single Purchase Order. We hypothesise a simplistic situation of Same Bill Accounting Date, Same Vendor, Same Purchase Order Number, Same Approver and Different Vendor Bill Number.

 

By applying Duplicate Key Exclusion the list of potential Bill splits can be identified.

 

This file can then be summarized on the Fields Bill Accounting Date, Vendor, Purchase Order Number, and Approver to arrive at the sum of Bill Amount splits.

 

The sum from above can be matched (Joined) on the common field Approver with the internal approval limits of the Approver from within the system to look for Sum of Splits more than the Approver's Limit.

 

These could be Potential Splits to investigate further.

 

In the next post we look at using Correlation within IDEA to identify questionable trends in Marketing and Advert spends vis-a-vis New Product New Market penetration.

 

Best Regards

 

Group Admin Team