CH13 EXPENDITURE- Receiving

CH13 EXPENDITURE- Receiving - • The control procedure to...

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CH13 EXPENDITURE: RECEIVING The second major business activity in the expenditure cycle is the receipt and storage of ordered items. The receiving department is responsible for accepting deliveries from suppliers. The receiving department is responsible for accepting deliveries. The inventory stores department is responsible for storage of the good. Both two department usually reports to the warehouse manager, who in turn reports to the vice president of manufacturing. When a deliver arrives, a receiving clerk compares the purchase order number referenced on the supplier’s packing slip with the open purchase order file to verify that the good were ordered and count the quantity of goods delivered and examine each delivery for signs of obvious damage. Receiving report documents details about each delivery including the date receive, shipper, supplier, and purchase order number For each item received, it show the item number, description, unit of measure, and quantity
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Unformatted text preview: • The control procedure to prevent threats – Accept only deliveries for an approved purchase order – Company must clearly communicate to receiving clerks the importance of carefully and accurately counting all deliveries. – Use of bar codes and RFID tags can significantly reduce accidental mistakes in counting – Hold the appropriate supervisor responsible for all such costs incurred by that department (one way to control purchase of services) – Detect controls are needed. One of the most techniques is for the internal audit function to periodically conduct detailed reviews of contracts for services, including audits of supplier records. – Use to Safe guard inventory to against loss – Be stored in secure place – Be documented – Be counted the inventory periodically on hand and to reconcile those counts with the inventory record. – Proper segregation of duties can further help minimize the risk of inventory theft....
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CH13 EXPENDITURE- Receiving - • The control procedure to...

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