Accounting Information Systems Chapter 5 Homework Assignment Please answer each question in complete sentences. 1. Differentiate between a purchase requisition and a purchase order. 2. The Soap Manufacturing Company has three employees who work in the warehouse. All of the warehouse workers are authorized to order inventory when it falls below the reorder level. The workers complete a purchase order and mail it to the supplier of their choice. The inventory is delivered directly to the warehouse. The workers send a memo to accounts payable reporting the receipt of inventory. Accounts payable compares the warehouse memo to the supplier's invoice. Accounts payable prepares a check which the treasurer signs. Discuss potential internal control risks inherent in this system. 3. What are steps taken in the receiving department under a basic technology expenditure cycle? 4. Identify six classes of physical controls employed in the expenditure cycle and give one example of each. 5. Describe two areas where segregation of duties is important in the expenditure cycle.

Please answer each question in complete sentences. 1. Differentiate between a purchase requisition and a purchase order. 2. The Soap Manufacturing Company has three employees who work in the warehouse. All of the warchouse workers are authorized to order inventory when it falls below the reorder level. The workers complete a purchase order and mail it to the supplier of their choice. The inventory is delivered directly to the warehouse. The workers send a memo to accounts payable reporting the receipt of inventory. Accounts payable compares the warehotse memo to the supplier's invoice. Accounts payable prepures a check which the treasurer signs. Discuss potential internal control risks inherent in this system. 3. What are steps taken in the receiving department under a basic technology expenditure cycle? 4. Identify six classes of physical controls employed in the expenditure cycle and give one example of each. 5. Describe two areas where segregation of duties is important in the expenditure cycle