packing slip in the receiving department, and one copy with the inventory to the warchouse. When...

 

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packing slip in the receiving department, and one copy with the inventory to the warchouse. When the accounts payable clerk receives a har copy invoice from the vendor, she reconciles i invoice with the purchase order, records the liabili in the AP Subsidiary Ledger from the terminal in b office, and assigns a due date for payment, The warehouse clerk receives the inventory reconciles it with the receiving report, and updates the inventory subsidiary ledger from a terminal in the warehouse. VI UIS Uat are appropi in this sya 6. RISK ANALYSIS AND INTERNAL CONTROL Review the following description of a purchases sys- tem and answer the questions at the end. The purchasing agent periodically checks inven- tory levels from a computer terminal, which is con- nected to a central accounting system. The agent searches the inventory file for items that need to be ordered. He then selects a supplier, prints a hard copy of the purchase order, and mails it to the ven- dor. The clerk files one copy of the PO in the depart- ment and sends a second copy to the AP Clerk. When the inventories arrive at the receiving depart- ment, a receiving clerk reconciles the items with the packing slip, inspects them for condition, and manu- ally prepares a three-part receiving report. The clerk sends one copy to the purchasing department to close out the open PO, files one copy along with the Required a. Creaté a system flowchart of the system. b. Describe the uncontrolled risks in the system. c. Describe the physical controls needed to reduce the risks identified in (b). 7. rohl 7, desc he IT the system. aj ica Be specil untrol plays. packing slip in the receiving department, and one copy with the inventory to the warchouse. When the accounts payable clerk receives a har copy invoice from the vendor, she reconciles i invoice with the purchase order, records the liabili in the AP Subsidiary Ledger from the terminal in b office, and assigns a due date for payment, The warehouse clerk receives the inventory reconciles it with the receiving report, and updates the inventory subsidiary ledger from a terminal in the warehouse. VI UIS Uat are appropi in this sya 6. RISK ANALYSIS AND INTERNAL CONTROL Review the following description of a purchases sys- tem and answer the questions at the end. The purchasing agent periodically checks inven- tory levels from a computer terminal, which is con- nected to a central accounting system. The agent searches the inventory file for items that need to be ordered. He then selects a supplier, prints a hard copy of the purchase order, and mails it to the ven- dor. The clerk files one copy of the PO in the depart- ment and sends a second copy to the AP Clerk. When the inventories arrive at the receiving depart- ment, a receiving clerk reconciles the items with the packing slip, inspects them for condition, and manu- ally prepares a three-part receiving report. The clerk sends one copy to the purchasing department to close out the open PO, files one copy along with the Required a. Creaté a system flowchart of the system. b. Describe the uncontrolled risks in the system. c. Describe the physical controls needed to reduce the risks identified in (b). 7. rohl 7, desc he IT the system. aj ica Be specil untrol plays.

Answer rating: 100% (QA)

Answers a b Unauthorized Inventory Purchases because there is no transactions authorization when the purchasing agent orders inventory Physical Contro... View the full answer