6. purchase order 7.kickbacks & procurement card hoy control system that production based on forecasted sales + Docessed only intemally 10 mitate the purchase of materials supplies, or services Process for approving supplier invoices based on a mosy match of the receiving report and phase de i Process for apprengupplier invoices based on a de match of the purchase order, receiving report and applier One Method of maintaining accounts payable in which rachupplier invoice is tracked and paid for blanket purchase order 10. evaluated receipts senlement (ERS) 11. disbursement voucher 12. recewing report 13 debitmem 14. vender-managed inventory 15. Voucher package Method of maintaining accounts payable that generates ce check to pay for a set of invoices from the same plans 1 Combustion of a purchase order receiving report, mi applies tice that all relate to the same - Documented to live each invoice being paid by estoy control system that seeks to minimize the sum of ordering Caing, and stockout costs System whereby supplier me granted access to point of sale POS) and memory data in order to cally replenishestory levels P Apent to purchase set quantities at specified meals from a specific supplier Documented to record the quantities and condition of items delivered by a supplier Special purpose credit card used to purchase plies Fradi which aplies as a buver or 16. novoucherwytem 17. voucher autem Question no. 3 The following list identifies several important control features. For each control, (1) desembe is purpose, and (2) explain how it could be best implemented in an integrated ERP system a) Cancellation of the voucher package by the cashier after signing the check b) Separation of duties of approving invoices for payment and signing checks c) Prenumbering and periodically accounting for all purchase orders d) Periodic physical count of inventory e) Requiring two signatures on checks for large amounts Requiring that a copy of the receiving report be routed through the eventory stores department prior to going to accounts payable #) Requiring a regular reconciation of the bank account by someone other than the person responsible for writing checks M). Maintaining an approved supplier list and checking that all purchase orders are issued only to suppliers on that list Question no. 2 Match the terms with their definition 1. corionic order quantaty (EOQ) 2. materials requirements planning (MRP) 3. just-in-time (JIT) inventory system Document that creates a legal obligation to buy and pay for goods or services Method used to maintain the cash balance in the petty cash account The time to reorder inventory triggered when the quantity on hand falls to a predetermined level d Document used to authorize a reduction in accounts payable because merchandise has been returned to a supplier e Inventory commot system that triggers production based upon actual sales 4. purchase requisition 5. prest fund 6. purchase order 7.kickbacks 8. procurement card , blanket purchase order feventory control system that trigger production based on forecasted sales Document used only internally to nitiate the purchase of materials, supplies, or services Process for approving supplier invoices based on a two-way match of the receiving report and purchase order 1 Process for approving supplier toutes based on a three-way match of the purchase order, receiving report and supplier invoice j Method of maintaining accounts payable in which each supplier invoice is tracked and paid for separately k Method of maintaining accounts payable that petierates one check to pay for a set of invoices 10. evaluated tectipte settlement (ERS) 11. disbursement voucher 12. receiving report 13. debit memo 14. sender-managed inventory 15 voucher package from the same supplier 1 Combination of a purchase order, receiving report and supplier invoice that all relate to the same transaction m Document used to list each invoice being paid by a check Inventory control system that seeks to minimize the sum of ordering, carrying, and stockout costs System whereby suppliers are granted access to point-of-sale (POS) and inventory data in order to automatically replenish inventory levels P Agreement to purchase set quantities at specified intervals from a specific supplier 4 Document used to record the quantities and condition of items delivered by a supplier Special purpose credit card used to purchase supplies Fraud in which is 16. novoucher item 17. Voucher systems Question no. 1 Which internal control procedure would be most cost-effective in dealing with the following expenditure cycle threats? a) A purchasing agent orders materials from a supplier he partially owns. b) Receiving-dock personnel steal inventory and then claim the inventory was sent to the warehouse. c) An unordered supply of laser printer paper delivered to the office is accepted and paid for because the "price is right." After all of the laser printers are jammed, however, it becomes obvious the "bargain" paper is of inferior quality. d) The company fails to take advantage of a 1% discount for promptly paying a vendor invoice. e) A company is late in paying a particular invoice. Consequently, a second invoice is sent, which crosses the first invoice's payment in the mail. The second invoice is submitted for processing and paid. f) Inventory records show an adequate supply of copy paper should be in stock, but none is available on the supply shelf. 6) The inventory records are incorrectly updated when a receiving-dock employee enters the wrong product number at the terminal. h) A clerical employee obtains a blank check and writes a large amount payable to a fictitious company. The employee then cashes the check i) A fictitious invoice is received and a check is issued to pay for goods never ordered or delivered. i) The petty cash custodian confesses to having "borrowed" $12,000 over the last five years. k) A purchasing agent adds a new record to the supplier master file. The company does not exist. Subsequently, the purchasing agent submits invoices from the fake company for various cleaning services. The invoices are paid. 1) A clerk affixes a price tag intended for a low-end flat-panel TV to a top-of-the-line model. The clerk's friend then purchases that item, which the clerk scans at the checkout counter. m) A receiving dock employee notices a delivery has four cases of iPads but the purchase order only requested three cases, so the employee set aside the fourth box and took it home. n) A purchasing agent regularly orders from particular suppliers who pay the employee kickbacks in order to win orders