Review the following description of a purchases sys- tem and answer the questions at the end....
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Review the following description of a purchases sys- tem and answer the questions at the end. The purchasing agent periodically checks inven- tory levels from a computer terminal, which is con- nected to a central accounting system. The agent searches the inventory file for items that need to be ordered. He then selects a supplier, prints a hard copy of the purchase order, and mails it to the ven- dor. The clerk files one copy of the PO in the depart- ment and sends a second copy to the AP Clerk. When the inventories arrive at the receiving depart- ment, a receiving clerk reconciles the items with the packing slip, inspects them for condition, and manu- ally prepares a three-part receiving report. The clerk sends one copy to the purchasing department to close out the open PO, files one copy along with the packing slip in the receiving department, and one copy with the inventory to the warehouse. When the accounts payable clerk receives a hard copy invoice from the vendor, she reconciles i invoice with the purchase order, records the liabili in the AP Subsidiary Ledger from the terminal in her office, and assigns a due date for payment. The warehouse clerk receives the inventory reconciles it with the receiving report, and updates the inventory subsidiary ledger from a terminal in the warehouse. sends Required a. Create a system flowchart of the system. 5. Describe the uncontrolled risks in the system. . Describe the physical controls needed to reduce the risks identified in (b). Review the following description of a purchases sys- tem and answer the questions at the end. The purchasing agent periodically checks inven- tory levels from a computer terminal, which is con- nected to a central accounting system. The agent searches the inventory file for items that need to be ordered. He then selects a supplier, prints a hard copy of the purchase order, and mails it to the ven- dor. The clerk files one copy of the PO in the depart- ment and sends a second copy to the AP Clerk. When the inventories arrive at the receiving depart- ment, a receiving clerk reconciles the items with the packing slip, inspects them for condition, and manu- ally prepares a three-part receiving report. The clerk sends one copy to the purchasing department to close out the open PO, files one copy along with the packing slip in the receiving department, and one copy with the inventory to the warehouse. When the accounts payable clerk receives a hard copy invoice from the vendor, she reconciles i invoice with the purchase order, records the liabili in the AP Subsidiary Ledger from the terminal in her office, and assigns a due date for payment. The warehouse clerk receives the inventory reconciles it with the receiving report, and updates the inventory subsidiary ledger from a terminal in the warehouse. sends Required a. Create a system flowchart of the system. 5. Describe the uncontrolled risks in the system. . Describe the physical controls needed to reduce the risks identified in (b).
Expert Answer:
Answer rating: 100% (QA)
sends one copy to the purchasing department to close out the open PO files one copy along with the p... View the full answer
Related Book For
Fundamental Accounting Principles
ISBN: 978-0078110870
20th Edition
Authors: John J. Wild, Ken W. Shaw, Barbara Chiappetta
Posted Date:
Students also viewed these accounting questions
-
The Carrefour Group reports the following description of its financial assets available-for-sale. Assets available for sale are . . . valued at fair value. Unrealized . . . gains or losses are...
-
The Carrefour Group reports the following description of its financial assets available-for-sale. Assets available for sales are . . . valued at fair value. Unrealized . . . gains or losses are...
-
The Carrefour Group reports the following description of its trading securities (titled financial assets reported at fair value in the income statement). These are financial assets held by the Group...
-
1.The purpose of using a balanced scorecard is for: Multiple Choice A.companies to make sure their business activities align with strategy. B.companies to compare themselves with their competitors....
-
Ocean View Services had the following unadjusted balances at December Salaries Payable, $0; Salaries Expense, $1,400. The following transactions place at the end of 2016 and beginning of 2017: 2016...
-
Determine vo in the op amp circuit of Fig. 5.96? 30 k 40 12 60 k 10 k12 2 V 20 k12 10 k 4 V
-
Discuss the types of discrimination that occur in the workplace.
-
Ray and Maria Gomez have been married 3 years. They live at 1610 Quince Ave., McAllen, TX 78701. Ray works for Palm Oil Corporation and Maria works for the City of McAllen. Maria's Social Security...
-
Present Porcelain Company produces and sells kitchen utensils. Last year Present Porcelain sold 10,000 knives and 5,000 forks. Information on the two products is as follows: Knives Forks Price $12...
-
Instructions You are expected to read the article titled: Risk mitigation in IT outsourcing strategy revisited: longitudinal case research at LISA, and answer the case study questions in the next...
-
Exercise 1.2 Find the most recent data on the U.S. current account and its components. Present your answer in a form similar to table 1.1, that is, show figures in both current dollars and as a...
-
Because it is unlikely she will be able to visit you this year, your wealthy American aunt wants to send you a present for your birthday. You expect she will give you USD 4813 in 2 months. Having...
-
Suppose you offer your car for sale. Your car was submerged up to the windows in a flood three years ago, but the car currently seems to be operating fine for you. A potential buyer asks you, Has...
-
Briefly describe what cultural and cross-cultural training can contribute toward employees' attitudes and behaviors in diverse workplaces.
-
Theo's Tree Trimming Service reported total revenue of $100,000 with explicit costs of $20,000. The opportunity cost of labor (an implicit cost) is $15,000. What is Theo's economic profit?
-
What are the primary mechanisms through which ethnocentrism manifests in intercultural interactions?
-
Explain about the case scenario of FIGURE 13-7 Price discovery by hill climbing: structure and key components.? And about Modeling decision Making.? Kindly take reference from below and chapter 13...
-
On July 1, 2011, Flashlight Corporation sold equipment it had recently purchased to an unaffiliated company for $480,000. The equipment had a book value on Flashlights books of $390,000 and a...
-
Monica Gellar works in both the jewelry department and the hosiery department of a retail store. Gellar assists customers in both departments and arranges and stocks merchandise in both departments....
-
Refer to the financial statements and notes of Research In Motion in Appendix A. In its presentation of accounts receivable on the balance sheet, how does it title accounts receivable? What does it...
-
Prepare general journal entries for the following transactions of a new company called Pose for Pics. Aug. 1 Kasey Madison, the owner, invested $7,500 cash and $32,500 of photography equipment in the...
-
What is the change in value for this security over the four quarters recorded in the highlowclose graph?
-
Which of the 10 years had the most and least variability between the maximum sales of womens clothing and the minimum for mens, and what were those ranges?
-
What happened to the average sales figures for jewelry over the 10-year period?
Study smarter with the SolutionInn App