This preview shows pages 1–3. Sign up to view the full content.
This preview has intentionally blurred sections. Sign up to view the full version.View Full Document
Unformatted text preview: GPD HW4: Ch 6 Expenditure Cycle 1. Look at your flowchart. Can the warehouse or the sales order entry clerk initiate Purchase orders by entering them into the GPD system? 2. P.O.'s are authorized by printing them, signing the signature line on the P.O. and sending the P.O. to the vendor. Who normally authorizes the P.O.? (Look at your flowchart) Suppose a company doesn't have enough employees to staff this department. Who in the company could authorize the P.O. without compromising internal control? What is this alternative internal control called? What are some threats of letting anyone in the company authorize P.O.'s? 3. Is the P.O. posted? If so then who posts it? If not, then why not? 4. what are the four basic steps in the expenditure cycle? 5. Before a receiving employee can accept shipment, the P.O., the condition and the quantity of goods (packing slip) must be checked. When the receiving employee accepts delivery he/she is taking responsibility for the order by signing off on the delivery truck operator's list. Who is responsible if he/she signs for receipt of 10 items and then later inputs receipt of only 6 items? 6. 6....
View Full Document
This note was uploaded on 03/21/2011 for the course ECON 400 taught by Professor Shqerat during the Spring '11 term at University of Jordan.
- Spring '11