u02a2 Unit 2 Assignment 2.docx - Control and Accounting...

This preview shows 1 out of 2 pages.

Control and Accounting Information Systems Problem In this problem, identify strengths and weaknesses in an organization's internal control structure. Complete Chapter 7, problem 7.8 a–b on pages 220–221 of the textbook. For each internal control strength, you identified, explain how the procedure helps achieve good authorization, accounting, or asset protection control. 1. Routine purchases are initiated by inventory control notifying the purchasing department of the need to buy goods. The purchasing department fills out a prenumbered purchase order and gets it approved by the purchasing manager. The original of the five-part purchase order goes to the vendor. The other four copies are for purchasing, the user department, receiving for use as a receiving report, and accounts payable. Answer #1: Strength is monitoring the inventory and having Inventory control by prenumbered purchase order and it is authorized by manager. 4. Prenumbered vendor invoices are recorded in an invoice register that indicates the receipt date, whether it is a special order, when a special order is sent to the requesting department for approval, and when it is returned. A review of the register indicated that there were seven open
Image of page 1

Subscribe to view the full document.

Image of page 2
You've reached the end of this preview.
  • Winter '15
  • Tim Price
  • Supply chain management terms, invoice, Purchase order, purchasing manager

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern