Designate whether the following controls are automated controls, IT-dependent manual controls or manual controls. Control description...
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Designate whether the following controls are automated controls, IT-dependent manual controls or manual controls. Control description Compare this year's inventory turnover to last year's inventory turnover Perpetual inventory records are reconciled to the general ledger each month Bank reconciliations are performed monthly Purchases are immediately processed when they are made with vendors on the approved vendor list Overhead costs are systematically applied to the cost of inventory produced Employees count inventory on hand at the end of each year; perpetual inventory records are updated based on the counts Type of control Prepaid customer orders are processed without credit approval Exception report generated by the cash disbursement application for invoices, purchase orders and receiving reports that don't match is reviewed by the cash disbursements manager Designate whether the following controls are automated controls, IT-dependent manual controls or manual controls. Control description Compare this year's inventory turnover to last year's inventory turnover Perpetual inventory records are reconciled to the general ledger each month Bank reconciliations are performed monthly Purchases are immediately processed when they are made with vendors on the approved vendor list Overhead costs are systematically applied to the cost of inventory produced Employees count inventory on hand at the end of each year; perpetual inventory records are updated based on the counts Type of control Prepaid customer orders are processed without credit approval Exception report generated by the cash disbursement application for invoices, purchase orders and receiving reports that don't match is reviewed by the cash disbursements manager
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Control description Compare this years inventory turnover to last years inventor... View the full answer
Related Book For
Auditing Cases An Interactive Learning Approach
ISBN: 9780134421827
7th Edition
Authors: Mark S Beasley, Frank A. Buckless, Steven M. Glover, Douglas F Prawitt
Posted Date:
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