Raised 2026-06-20 in the Q2 2026 internal audit baseline. 2 of 40 sampled purchase orders above INR 5 lakh were released by department heads instead of the Financial Controller.

Applications: SAP S/4HANA.

Potential risk

Unauthorised or erroneous transactions could go undetected and expose Meridian to financial loss and regulatory action.

Root cause

SAP release strategy did not enforce the revised delegation-of-authority bands.

Agreed action plan

Remediate: purchase orders released above delegated threshold.

Management response: Management agreed and committed to remediate before the Q3 review.

Action: REM-F-IAQ2-P2P-01
Owner (FPR): Priya Sharma
Target date: 31 Jul 2026
Priority: High
Status: Closed
Validation: Failed · planned 26 Sep 2026

Evidence for this control (3)

Open list →

Evidence	Title	Control	Source system	Collected	Status
ITGC-REQ-017	SAP S/4HANA: No self-approved purchase orders	P2P-01	SAP S/4HANA	9 Oct 2026	Accepted
ITGC-REQ-018	SAP S/4HANA: Release strategy matches threshold	P2P-01	SAP S/4HANA	8 Oct 2026	Accepted
Q2-EV-014	SAP S/4HANA · ticket sample (Q2)	P2P-01	SAP S/4HANA	25 Jun 2026	Rejected

Tests of this control (2)

Open list →

Test	Control	Cycle	Tested	By	Result	Confidence
TST-ITGC-P2P-01	P2P-01 · Purchase orders follow approval thresholds; no self-approval	Q3 2026 Unified Program Review	6 Oct 2026	Vikram Mehta, Farah Khan · Meridian Internal Audit	Fail	Medium
TST-Q2-P2P-01	P2P-01 · Purchase orders follow approval thresholds; no self-approval	Q2 2026 Unified Program Review	18 Jun 2026	Farah Khan, Vikram Mehta · Meridian Internal Audit	Fail	High