Kellogg Company-->Latin America-->Local Markets-->Caribbean
ProcessTransaction Control Objective RiskControl Control DescriptionTest to be PerformedProcess owner
"01. Contract Negotiation "Contracts or PO's are in place for purchases of raw material, packaging
material, and services.
""No contracts or PO's are in place and
excessive amounts are charged by vendors
affecting cost or expenses.
"1.01 Contracts & Master POs (Key)"A contract or PO is established with all vendors and covers a period of time and an amount to be paid. PO's or contracts
should be issued for all purchases in accordance to the
Procurement Policy. For MRO´s, contracts are only
requested for services and Consignment materials. All
exceptions for purchasing procedures are included in the
Procurement Policy. Functions are segregated.""Verify the POs and contracts of selected items and confirm if they
where properly authorized.
According to our current policies,
PO's and/or contracts are mandatory
for purchases over $500.
"Yaisa Garcia, Rocio Lugo & Ileana Hernandez
"03. Material, Goods and Services Receipt "Ensure that materials and services are correctly paid according to requisition.
""Incomplete or incorrect services or
materials are paid to vendors.
"3.03 Open POs (Key)"User/warehouse verifies that the amounts and prices in each invoice match with the quantities and prices in the PO. If the information is correct, they perform the receipt in
""Ask for a list of Purchase Orders.
Take a sample and trace invoice
payments and goods reciepts.
SAP print screens of Requisitions,
Purchase Orders and GR were
compared with invoices received and
" Ileana Hernandez
"03. Material, Goods and Services Receipt "Purchasing and receiving functions are clearly segregated.
""Receipts are recorded by Purchasing,
exposing Company to fraud and loss.
"3.05 Receipts Processing (Key)"Receiving reports can only be input in SAP by the requestor or the employee in charge of receiving the good or service.
PO modifications due to rejections, returns or adjustments
can only be performed by Purchasing Department. If the
modification in greater than 10%, Purchasing Department
cancels the PO and generates a new PO.""Verify the list of SAP access to confirm that the roles of placing POs
and receiving are segregated.
" Ileana Hernandez
"06. Payments "Unauthorized payments to vendors are
""Unauthorized payments to vendors go
undetected resulting in financial error and
"6.03 Check Requests (Key)"Emergency payments must be requested to the LO Finance AP department. This payments must be properly authorized
and must contain all supporting documentation in order to
be processed. This payments are performed in accordance
to the Procurement Policy.""Ask for a list of check requests made during the QTR and take a sample
verifying if they were approved by
"Rocio Lugo/Yaiza Garcia
"06. Payments "All costs and expenses are in line with
budget, are properly approved and
registered in the appropriate accounts.
""Excessive costs or expenses affecting
budget exercise. Cost or expenses not
approved by budget / cost center owner
resulting in incorrect spending registration.
"6.04 Purchase Requisitions (Key)"User is responsible to obtain the authorization of the Requisition; Once Requisition has been approved,
Purchasing Departament creates the Purchase Order (PO).
Purchase requisitions are approved by budget / cost center
owner to be debited. Any exception should be authorized by
area Director.""Make a selection systematically from
the list of POs from the report
generated by transaction ME2M.
Verify that the Requisitions were...