WEEK 4 HW

WEEK 4 HW - 10-39 Accuracy-There is no indication of...

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10-39 Accuracy -There is no indication of control over dollar amounts on vouchers the purchase office does not review the invoice prior to processing approval. In addition to counting the merchandise received from the vendor, the receiving department personnel should examine the condition and quality of the merchandise upon receipt-Prior to attaching the purchase order to the purchase requisition the functions should include a check that: Prices are reasonable; the quality of the materials ordered is acceptable; Delivery dates are in accordance with company needs; All pertinent data on the purchase order and purchase requisition are in agreement. Existence- Preliminary review should be made before preparing purchase orders. The receiving report is not sent to the stores department. The controller should not be responsible for cash disbursements. The cash disbursement function should be the responsibility of the treasurer, not the controller, so as to provide proper segregation of duties between the custody of assets and the recording of transactions.The purchase requisition is not approved Completeness -All prenumbered documents should be accounted for. A separate file should be maintained for the merge and correspond documents. A record of all vouchers submitted to the cashier should be maintained in the accounts payable department. There is no indication of control over vouchers in the accounts payable department. 11-27 a. The lack of separation of duties was the major deficiency that permitted the fraud b. The benefit of prelisting cash is to immediately document cash receipts at the time that they are received by the company c. This can be done by anyone independent individual to trace from the prelisting to the bank statement to verify that all amounts were prepares or makes the deposit. d.
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WEEK 4 HW - 10-39 Accuracy-There is no indication of...

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