Risks and Measures of Purchasing and Payment Activities in Internal Control System

Abstract

The accounting and auditing scandals seen in global scale have created significant scepticisms about accuracy and honesty claim on the financial reports of business managements. The fact that business administrators design internal control systems with respect to institutional management and make it to operate efficiently both increases the efficiency and productivity of activities and raises the reliability level of financial reports. When internal control system is handled within the frame of cycle approach, faults and frauds are mostly seen in the purchase and payment cycle. In this study, the determination of the risks in purchase and payment cycle, of the precautions to be taken for the risk and of the politics and procedures regarding fault and fraud have been tackled.