Question 6 Internal Control and Governance 1 15 5 marks The following purchase order (Figure 6.1) was sent by Giddy Up Pty Ltd to Stable Supplies Ltd. The second copy of the purchase order (Figure 6.2) from Giddy Up was sent to the receiving department and was stamped and signed when the goods were received. Required a) Identify and explain four control features that are followed in the purchase order sent to the vendor (Figure 6.1). b) Identify and explain four control features that are followed in the Copy of purchase order routed to the receiving department (Figure 6.2). c) Discuss four advantages of those control features followed in the purchase order sent to the vendor (Figure 6.1). d) Discuss four advantages of those control features followed in the copy of purchase order routed to the receiving department (Figure 6.2). e) What controls could have been present when the purchase requisition details (not shown) were entered into the computer and the purchase order generated? Discuss two controls that should have been followed when purchase requisition entered into the computer.

PURCHASE ORDER Giddy Up Pty Ltd 1 Winning Post Lane Flemington ABN: 11 111 111 111 SUPPLIER COPY No. 64971 To: Stable Supplies 4 Fetlock Road Caulfield Order Date: 1/11/2012 Purchase Req No.: 61111 Product No. A-187 Quantity 5 Description Barrier blanket Riding crop Racing saddle - light Norton bit A-199 C-297 G-851 Price 150.00 45.00 300.00 80.00 4 Total 750.00 180.00 300.00 240.00 1 3 TOTAL 1470.00 Moon Mary Bethany Prepared By: Approved By: Alamy Kym Dilaney PURCHASE ORDER Giddy Up Pty Ltd 1 Winning Post Lane Flemington ABN: 11 111 111 111 RECEIVING DEPT COPY No. 64971 To: Received 07 NOV 12 Stable Supplies 4 Fetlock Road Caulfield Order Date: 1/11/2012 Purchase Req No.: 61111 Price Quantity Total Product No. A-187 A-199 C-297 G-851 Description Barrier blanket Riding crop Racing saddle - light Norton bit TOTAL Prepared By: Many Mary Bethany Approved By: Kym Dilaney PURCHASE ORDER Giddy Up Pty Ltd 1 Winning Post Lane Flemington ABN: 11 111 111 111 SUPPLIER COPY No. 64971 To: Stable Supplies 4 Fetlock Road Caulfield Order Date: 1/11/2012 Purchase Req No.: 61111 Product No. A-187 Quantity 5 Description Barrier blanket Riding crop Racing saddle - light Norton bit A-199 C-297 G-851 Price 150.00 45.00 300.00 80.00 4 Total 750.00 180.00 300.00 240.00 1 3 TOTAL 1470.00 Moon Mary Bethany Prepared By: Approved By: Alamy Kym Dilaney PURCHASE ORDER Giddy Up Pty Ltd 1 Winning Post Lane Flemington ABN: 11 111 111 111 RECEIVING DEPT COPY No. 64971 To: Received 07 NOV 12 Stable Supplies 4 Fetlock Road Caulfield Order Date: 1/11/2012 Purchase Req No.: 61111 Price Quantity Total Product No. A-187 A-199 C-297 G-851 Description Barrier blanket Riding crop Racing saddle - light Norton bit TOTAL Prepared By: Many Mary Bethany Approved By: Kym Dilaney