Purchasing and Fixed Assets Internal Controls.pptx

Purchasing and Fixed Assets Internal Controls.pptx -...

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Robatelli’s: Internal Control System Purchasing and Fixed Assets
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Daily Snapshot - Purchasing At Robatelli’s, here are the purchasing activities that occur: Expenditures for supplies and inventory to make the pizzas Cost to conduct purchases and payments Payroll expense to pay employees on a regular basis
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Daily Snapshot – Fixed Assets At Robatelli’s, here are the fixed asset processes in place: Expenditures for human resources (both payroll and expense for hiring/firing) Expenditures for capital resources
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Risk Factors - Purchasing Robatelli’s has several major risk areas they need to be aware of in their purchasing business segment: Authorization of Transactions: Only certain individuals should have access to approval purchases, and manage vendor relationships Segregation of Duties: If the duties of requisitions, ordering, receiving, and accounts payable are not separated, the company is at greater risk of fraud Adequate Records & Documents: There needs to be proper documentation provided to accounts payable for the payment of invoices for purchases made Security of Assets & Documents: Robatelli’s needs to ensure that only specific individuals have access to purchasing and receiving documentation Independent Checks & Reconciliation: Without proper oversight, the company is at risk of fraudulent transactions or activity
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Risk Factors – Fixed Assets Robatelli’s has several major risk areas they need to be aware of in their fixed assets business segment: Authorization of Transactions:
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  • Fall '19
  • Fixed Assets, Generally Accepted Accounting Principles,  Expenditures

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