TheVendor Master Filetopic in the APS Certification Program underscores the need for careful management of VMF changes due to the high risk of fraud.Many instances of fraud, such as redirecting payments to fraudulent accounts, are enabled by unauthorized or unverified changes to vendor data (e.g., bank account details), making rigorous controls essential.
Option A (Internal audit generally oversees this process and they must be consulted first): Incorrect. While internal audit may review VMF changes, they do not typically oversee the process directly; AP owns the VMF.
Option B (Many instances of fraud are enabled by changes in the VMF): Correct. Fraudulent changes, like altering bank details, are a common fraud vector, necessitating strict controls.
Option C (This task is generally performed by those who have little training on data entry): Incorrect. VMF changes are typically handled by trained AP staff, not untrained personnel.
Option D (Some AP software solutions have been shown to corrupt data during this process): Incorrect. There is no evidence in IOFM materials suggesting widespread software corruption issues specific to VMF changes.
Reference to IOFM APS Documents: The APS e-textbook underVendor Master Filestates, “Special care is required for VMF changes because many fraud schemes involve altering vendor data, such as bank accounts, to divert payments.” The training video emphasizes, “Fraud is often enabled by unauthorized VMF changes, requiring strict verification and audit trails.”
