Invoice Audit Definition
An invoice audit is the process of reviewing an organization’s invoices to ensure they are accurate and conform to the organization’s policies and procedures. This can be done internally by the organization’s accounting department or externally by a third-party firm. The purpose of an invoice audit is to identify errors and discrepancies, which can then be corrected to improve the accuracy of the organization’s financial records.
There are various types of invoice audits that can be performed, depending on the needs of the organization. A basic review may simply involve checking that all invoices have been entered into the system correctly and that they match the corresponding documentation. A more detailed audit may include a review of the coding on each invoice to ensure it is correct, as well as verifying that the correct approvals have been obtained before payment is made.
Organizations should consider conducting an invoice audit on a regular basis, particularly if they are using manual processes for entering and approving invoices. Doing so can help to improve efficiency and accuracy, preventing potential errors and discrepancies from going undetected.
