It is important that payments are only made for goods, services and expenses ordered and received by the business. Therefore if a payment is required, there must be sufficient evidence of that the goods, services or expenses have been received so that the payment is for a legitimate reason.
Computerised accounting systems may also generate payments in the form of automated direct payments and electronically-produced cheque payments to suppliers and others owed money by a business.
In these situations, it is vital that a suitably responsible person (a senior member of staff not directly involved in the process to raise and authorise payments) regularly reviews and approves payment transactions. It is also important that any payments made, in whatever form they may take, are subject to appropriate checks and controls to confirm that they are valid payments for goods and services received. No payments should be made without appropriate authorisation.