Credit memos or journal entries taken against accounts receivable. Excessive entries against accounts receivable that are not related to receipt of payment can be a sign of various fraudulent schemes or improper accounting procedures.
AP (Accounts Payable) Aging
Outstanding accounts payable older than a specific number of days. Default is 30 days. The longer an amount is outstanding the more likely it signals a cash flow issue or misapplied vendor payment.
AR (Accounts Receivable) Aging
Outstanding accounts receivable older than a specific number of days. Default is 30 days. The longer an amount is outstanding the more likely it signals a collections issue or misapplied customer receipt.
Checks to Cash or No Payee
Checks made out to "Cash" or with no payee. All transactions should have a proper name associated with them. Transactions without proper names are usually a clerical error, but can be used to cover up fraud.
Checks to Vendors with Bills
Checks written against expense accounts for vendors with amounts in Accounts Payable. Vendor payments should be applied directly to their bills instead of written directly against an expense account. This can signal incorrectly applied vendor payments or potentially fraudulent activity.
Credits to Expense
Credits taken against expense account types. A large volume of credits taken against expense accounts can signal lots of refund activity, which could be linked to fraudulent purchasing schemes or control breakdowns.
Customer Names in Expenses
Transactions coded to an expense account and tagged with customer name. There is usually very little overlap between vendor and customer names. Often this signals that a deposit or return was incorrectly recorded.
Debits to Income
Debits taken against income account types. A large volume of debits taken against income accounts can signal lots of return activity, which could be linked to fraudulent customer schemes or control breakdowns.
Deposits from Customers with Invoices
Deposits straight to income accounts for customers with amounts in Accounts Receivable. Customers that have invoices should have their payments applied directly to those invoices and not deposited directly into an income account. This can signal incorrectly applied customer receipts or potentially fraudulent activity.
Duplicate Bills
Duplicate bills for the same vendor. All transactions should have unique identifiers. Duplication is often a clerical error, but can signal more serious issues.
Duplicate Checks
Duplicate bills for the same vendor. All transactions should have unique identifiers. Duplication is often a clerical error, but can signal more serious issues.
Duplicate Invoices
Duplicates in the invoice register. All transactions should have unique identifiers. Duplication is often a clerical error, but can signal more serious issues.
Expenses to Vendors with Bills
Expense transaction types associated with vendors with amounts in Accounts Payable. All vendors with open bills should have amounts paid to them recorded as bill payments. Transactions coded directly to expense accounts are often clerical errors, and can lead to incorrect Accounts Payable and expense account balances.
Expenses with No Payee
Expenses with no payee. All transactions should have a proper name associated with them. Transactions without proper names are usually a clerical error, but can be used to cover up fraud.
Missing Checks
Gaps in the check register. This happens most often when someone deletes something that should have been voided. In more serious cases, it can be used to cover up internal fraud. There should be no gaps in your registers.
Missing Invoices
Gaps in the invoice register. This happens most often when someone deletes something that should have been voided. In more serious cases, it can be used to cover up internal fraud. There should be no gaps in your registers.
Non-numeric Checks
Checks with alphabetical or special characters in the number. Checks should only ever have numerical transaction identifiers. This can signal the transaction was entered incorrectly.
Profile Completeness
Generates a score based on completeness of vendor and customer profiles. More complete vendor and customer profiles reduce the chance of error internally, and make fraud harder to commit.
Unapplied Payments
Payment transactions where an outstanding amount has not been applied to a Customer invoice. Payments that have not been fully applied to invoices need to be reviewed to determine if they are overpayments, prepayments or misapplied payments.
Uncategorized Assets
Transactions coded to "Uncategorized Assets" account. Transactions should be coded to descriptively named accounts. Amounts left for long periods in this account can signal poor internal communication and lack of attention to detail.
Uncategorized Expenses
Transactions coded to "Uncategorized Expense", "Ask My Accountant", "Not Specified", or "Reconciliation Discrepancies". Transactions should be coded to descriptively named accounts. Amounts left for long periods in these accounts can signal poor internal communication and lack of attention to detail.
Uncategorized Income
Transactions coded to "Uncategorized Income" account. Transactions should be coded to descriptively named accounts. Amounts left for long periods in this account can signal poor internal communication and lack of attention to detail.
Unreconciled Bank Transactions
All unreconciled bank transactions. These transactions should be inspected to identify whether they were incorrectly added to the bank account or if the account needs to be reconciled more frequently.
Unreconciled CC Transactions
All unreconciled credit card transactions. These transactions should be inspected to identify whether they were incorrectly added to the bank account or if the account needs to be reconciled more frequently.
Updated System Admin Transactions
Manually updated transactions originally created by "System Administration" and "Online Banking Administration". Users should generally not have to update transactions created by administrator account types. Inspect these transactions for any suspicious signs.
Vendor Names in Income
Transactions coded to an income account and tagged with vendor name. There is usually very little overlap between vendor and customer names. Often this signals that a deposit or return was incorrectly recorded.