1. Identify key deficiencies for cash disbursements. After you decide on the deficiencies, include each deficiency in the bottom portion of one of the two matrices.

2. Include a“D” in the matrix in each column for the objective(s)to which each control deficiency applies.
    
    

Transcribed Image Text:

Figure 12-13 Pinnacle Manufacturing-Acquisition and Payment Cycle CASH DISBURSEMENTS CLERK CENTRALIZED PURCHASING DEPARTMENT Prepare purchase order from approved requisition; P.O. approved by supervisor Purchase order P.O. To vendor REQ RECEIVING DEPARTMENTS Receive and check. goods Receiving report independent person. • Procedures are applied daily. R.R. Notes on controls • Purchases can only be made from vendors included in pre-approved vendor file. • Chart of accounts-the company uses an adequate detailed chart of accounts. • Prenumbered documents-all documents shown are prenumbered. They are accounted for by a function other than the preparer. Clerk follows up weekly on computer generated report of unmatched receiving report. • Bank reconciliation-done monthly by • Accounts payable master file total is reconciled to the general ledger total monthly. • Treasurer reviews vendor activity for major vendors and commitments requiring disclosure. ACCOUNTS PAYABLE CLERK Receive vendor's invoice INV Purchase transaction file Print reports R.R. Match documents Prepare voucher P.O. Key enter and process purchase transaction data, reconciles to control total Acquisitions journal REQ Voucher document package File description I. Chronological 2. Numerical *Includes voucher, vendor's invoice, receiving report, purchase order, and purchase requisition. Verifies accuracy and completeness of documents package, dates and approves. Key enter and process cash disbursement transaction data, reconciles to control total Cash disbursement transaction file Update accounts payable master file Accounts payable master file Print reports Cash disbursements journal Check To vendor; signed by treasurer Voucher document package (reviews support) 2 Figure 12-13 Pinnacle Manufacturing-Acquisition and Payment Cycle CASH DISBURSEMENTS CLERK CENTRALIZED PURCHASING DEPARTMENT Prepare purchase order from approved requisition; P.O. approved by supervisor Purchase order P.O. To vendor REQ RECEIVING DEPARTMENTS Receive and check. goods Receiving report independent person. • Procedures are applied daily. R.R. Notes on controls • Purchases can only be made from vendors included in pre-approved vendor file. • Chart of accounts-the company uses an adequate detailed chart of accounts. • Prenumbered documents-all documents shown are prenumbered. They are accounted for by a function other than the preparer. Clerk follows up weekly on computer generated report of unmatched receiving report. • Bank reconciliation-done monthly by • Accounts payable master file total is reconciled to the general ledger total monthly. • Treasurer reviews vendor activity for major vendors and commitments requiring disclosure. ACCOUNTS PAYABLE CLERK Receive vendor's invoice INV Purchase transaction file Print reports R.R. Match documents Prepare voucher P.O. Key enter and process purchase transaction data, reconciles to control total Acquisitions journal REQ Voucher document package File description I. Chronological 2. Numerical *Includes voucher, vendor's invoice, receiving report, purchase order, and purchase requisition. Verifies accuracy and completeness of documents package, dates and approves. Key enter and process cash disbursement transaction data, reconciles to control total Cash disbursement transaction file Update accounts payable master file Accounts payable master file Print reports Cash disbursements journal Check To vendor; signed by treasurer Voucher document package (reviews support) 2

Answer rating: 100% (QA)

1a Total Acquisitions 92883712 Result Purchase order not a... View the full answer