Ch10 - Chapter 10 Auditing the Expenditure Cycle IT...

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Chapter 10: Auditing the Expenditure Cycle IT Auditing & Assurance, 2e, Hall & Singleton
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Step 1: Data processing department – inventory control Purchasing Department Step 2: Data processing department – P.O. Receiving Department Step 3: Data processing department – batch update of inventory Accounts Payable Step 4: Data processing department – validates vendors PURCHASES: BATCH PROCESSING
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Step 5: Data processing department – scans for items due and prints checks for items received Step 6: Cash disbursements department – reconciles checks, submits checks to management for signature Step 7: Accounts payable – matches copies of checks with open vouchers, closes them and files documents Concludes expenditure cycle CASH DISBURSEMENT: BATCH PROCESSING
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Data processing steps performed automatically: 1. Inventory file scanned for items and reorder points 2. Purchase requisition record for all items needing replenishment 3. Consolidate requisitions by vendor 4. Retrieve vendor mailing information 5. P.O. prepared and sent to vendor (EDI) 6. Open P.O. record added for each transaction 7. List of P.O. sent to purchasing department CASH DISBURSEMENT: REENGINEERED—FULLY AUTOMATED
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Goods arrive at receiving department Quantities received entered per item CASH DISBURSEMENT: REENGINEERED– FULLY AUTOMATED
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Data processing steps performed automatically: 1. Quantities keyed matched to open P.O. record
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This note was uploaded on 04/04/2011 for the course ACCT 5230 taught by Professor Szendi during the Spring '10 term at Kean.

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Ch10 - Chapter 10 Auditing the Expenditure Cycle IT...

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