Here is the background information on your task
Our client for this engagement, MedTech Industries, is a non-public start-up in the healthcare industry looking to go through its Initial Public Offering (IPO) next year. Once the company goes public, it must comply with several regulations, the biggest being Sarbanes-Oxley (SOX). Based on initial conversations with company leadership, current processes would likely not fully comply with SOX requirements. Our job is to understand the current state, identify gaps, and provide recommendations for improvement.

The client has provided us with documentation to understand their processes and environment. So, to have productive conversations and provide value, we should thoroughly read these materials before meeting with the client.

The senior associate has sent you the client’s documentation that explains the design of their procure-to-pay (P2P) process. The senior associate wants you to read through the document and identify existing gaps that may pose a risk for the company. Note that the documentation may not be thorough, so you may need to ask follow-up questions to better understand the current state.
Here is your task
Read through the client’s P2P Standard Operating Procedure (SOP) document in the Resources section below to determine if controls are missing from the process and identify the risks associated with those gaps.

Look for articles and educational materials that explain proper P2P process design and the types of business processes and system controls that should be embedded. You can also use the documents provided by the senior associate to help you with this exercise. 

here is P2P SOP:
MedTech Industries
Cash Disbursements
Procure-to-Pay (P2P) Standard Operating Procedure
Purpose: This document aims to provide a detailed overview of the P2P process, including internal
controls in place to mitigate the risk of fraud and breach in confidentiality, integrity, and availability of
our systems and data.
Identify Company Needs, Purchase Requisition and Approval
When the company identifies a need for a material in the organization, the employee will submit a
requisition in the Procurement System. The purchasing department will receive the requisition and
automatically approve the submission. The Procurement system automatically accepts purchase
requisitions if submitted by a company employee. The purchasing coordinator will take the requisition,
find the lowest market price for the needed material, and contact the vendor to receive a quote. Based
on the quotation analysis, the supplier will be chosen, and the purchasing department will create a
purchase order (PO) in the Procurement System.
Purchase Order and Approval
After creating the PO, the purchasing coordinator will submit it to the supplier. The PO includes all
material specifications, quantities required, date or schedule, and terms and conditions. The supplier
should then provide an approval of the PO by confirming receipt of the PO.
Goods Receipt
The supplier will send the goods to the location designated in the PO. Upon delivery of the materials, the
warehouse or inventory team will receive a goods receipt that states the delivery details. The material is
immediately moved to its appropriate storage location in the warehouse. The warehouse or inventory
team will then make a materials entry in the Warehouse Management System based on the information
in the goods receipt.
Invoice Verifications
Once materials are delivered, the supplier provides an invoice to the warehouse or inventory team. They
should compare the invoice to the goods receipt to ensure all numbers match (i.e., quantity and price).
Upon validation, the warehouse or inventory team will use a shared password to log into the General
Ledger System and check the “Invoice Validated” box. Once the box is checked, the company purchasing
team will receive notification to release payment to the vendor.
Vendor Payment
Once the Purchasing team learns the invoice is validated, a purchasing coordinator will write a check for
the supplier. Coordinators have the authority to write and sign checks if they processed the requisition
and received the initial quote from the vendor. Checks should be mailed to the supplier within 90 days of
receiving the goods.
Purchasing System Controls
The Procurement Department owns the purchasing system and is responsible for provisioning,
maintaining, and reviewing access for all users in the system. Anyone can request access to the system
over email, which is granted based on the request submitted. In addition, privileged access to the
system, including administrative rights, may be provided with verbal approval from a manager over the
phone. To request administrative rights in the purchasing system, please call 123-456-7890.

Summarize your findings in an email to the senior associate, including business process gaps, system control gaps and any additional questions you have after reading the client’s document.