The following list presents statements regarding the expenditure processes. Each statement is separate and should be considered to be from a separate company. For each statement, determine whether it is an internal control strength or weakness, then describe why it is a strength or weakness. If it is an internal control weakness, provide a method or methods to improve the internal control.
a. A purchasing agent updates the inventory subsidiary ledger when an order is placed.
b. An employee in accounts payable maintains the accounts payable subsidiary ledger.
c. Purchasing agents purchase items only if they have received an approved purchase requisition.
d. The receiving dock employee counts and inspects goods and prepares a receiving document that is forwarded to accounts payable.
e. The receiving dock employee compares the packing list to the goods received and if they match, forwards the packing list to accounts payable.
f. An employee in accounts payable matches an invoice to a receiving report before approving a payment of the invoice.
g. A check is prepared in the accounts payable department when the invoice is received.

  • CreatedDecember 30, 2014
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