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Unformatted text preview: Stephen Hruby Ch 9 DQ 37,44; PR 61,64; Case 65 (2) only, 67 C only DQ 37.Compensating controls needed for an effective ERS system include establishing the receiving procedures to ensure goods are accepted only when part numbers and quantities match exactly. There is no reconciliation process later for substitutions, overshipments, or partial shipments. Vendors must also understand that receiving personnel will not accept a shipment unless it matches exactly. Payment is based on prior negotiated prices, not on an invoice. It is also necessary to authenticate user controls in order to prevent unauthorized access to purchase-related files. The system must also be monitored and tested to ensure the accuracy and completeness of the matching and payment approvals. Backup systems and data are also crucial to ensuring availability of the system at all times. DQ 44.Procurement cards provide for increased efficiencies in the accounts payable department by reducing time-consuming steps in purchase and payment transactions. They are credit cards that an organization gives to certain employees to make designated purchases. cards that an organization gives to certain employees to make designated purchases....
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This note was uploaded on 02/07/2012 for the course ACCOUNTING 456 taught by Professor Kurt during the Spring '11 term at UCLA.
- Spring '11