I am a Financial Accountant in industry for a large company and one of my tasks is to carry out due-dilligence checks on our new vendors.
One of the vendors that I have been asked to set up has supplied an invoice (internal procedure hasn't been followed and they have already been engaged) that when I check, show company and VAT registration details that are for a different company than 1) the company that we have engaged with, 2) that the invoice asks for payment to be made to, and 3) at first glance appears to be from.
The companies are related by having the same share-holders, but don't appear to be a group.
Having looked at the accounts for both companies I can see why they may want to recognise the revenue in the other entity, but it just doesn't feel quite right.
So my question is, is this legal and should I be reporting this?