Accountining information Discussion Board Week 3.docx

Controls integrate databases of various divisions and

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Controls : Integrate databases of various divisions and produce reports that link item descriptions to part numbers to allow consolidation of orders. Threat No. 3 — Purchasing Goods at Inflated Prices The cost of purchased components represents a substantial portion of the total cost of many manufactured products. Controls : Price lists for frequently-purchased items; use of catalogs for low-cost items; solicitation of bids for high-cost and specialized products; review of purchase orders; budgetary controls and responsibility accounting; and performance review. Threat No. 4 — Purchasing Goods of Inferior Quality Sometimes purchasing goods at the lowest possible price sacrifices quality of the goods. Controls : Use of approved supplier list; review of purchase orders; tracking of supplier performance; purchasing accountability for rework and scrap. Threat No. 5 — Purchasing from Unauthorized Suppliers Purchasing from unauthorized suppliers can result in numerous problems. Items may be of inferior quality or overpriced. Controls : review of purchase orders; restriction of access to supplier list; periodic review of supplier list; and coordination with procurement card providers to restrict acceptance of cards.
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  • Fall '08
  • Staff
  • Payment, Supply chain management terms, invoice

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