a. Cancellation of the voucher package by the cashier after signing the check. b. Separation of duties of approving invoices for payment and signing checks. c. Prenumbering and periodically accounting for all purchase orders. d. Periodic physical count of inventory. e. Requiring two signatures on checks for large amounts. f. Requiring that a copy of the receiving report be routed through the inventory stores department prior to going to accounts payable. g. Requiring a regular reconciliation of the bank account by someone other than the person responsible for writing checks. h. Maintaining an approved supplier list and checking that all purchase orders are issued only to suppliers on that list . Part I - Purpose Part II ERP System Control – Item a. Prevent resubmission of invoices Control field in supplier invoice record to indicate for double payment the document has been used Control field in purchase order and receiving report records to indicate the document has been used to support payment. b. Prevent payment of fictitious System matches all invoices to corresponding invoices receiving reports and purchase orders Checks signed by cashier. c. Prevent unauthorized purchases. Sequence check of all purchase orders. d. Verify the accuracy of recorded Still need to count physical inventory periodically. amounts and detect losses. e. Prevent large disbursements for Still need two signatures. questionable reasons. f. Verifies that items received were Receiving clerks enter that goods were transferred to placed in inventory and were not inventory. stolen. Inventory clerks acknowledge receipt of goods via terminals. System configured so that voucher package requires that the receiving report include the acknowledgement of receipt by inventory control. g. Detect unauthorized disbursements. required. h. Ensure the purchase of quality Validity of supplier number on all purchase goods and prevent violations of orders. laws or company policies. Restrict access to the supplier master file Verify all changes to the supplier master file Restrictions on who can make changes to the supplier master file. 13.9 For good internal control, which of the following duties can be performed by the same individual?
a. Cancellation of the voucher package by the cashier after signing the check. b. Separation of duties of approving invoices for payment and signing checks. c. Prenumbering and periodically accounting for all purchase orders. d. Periodic physical count of inventory. e. Requiring two signatures on checks for large amounts. f. Requiring that a copy of the receiving report be routed through the inventory stores department prior to going to accounts payable. g. Requiring a regular reconciliation of the bank account by someone other than the person responsible for writing checks. h. Maintaining an approved supplier list and checking that all purchase orders are issued only to suppliers on that list . Item Part I - Purpose Part II – ERP System Control a. Prevent resubmission of invoices for double payment Control field in supplier invoice record to indicate the document has been used Control field in purchase order and receiving report records to indicate the document has been used to support payment. b. Prevent payment of fictitious invoices System matches all invoices to corresponding receiving reports and purchase orders Checks signed by cashier. c. Prevent unauthorized purchases. Sequence check of all purchase orders. d. Verify the accuracy of recorded amounts and detect losses. Still need to count physical inventory periodically. e. Prevent large disbursements for questionable reasons. Still need two signatures. f. Verifies that items received were placed in inventory and were not stolen. Receiving clerks enter that goods were transferred to inventory. Inventory clerks acknowledge receipt of goods via terminals. System configured so that voucher package requires that the receiving report include the acknowledgement of receipt by inventory control. g. Detect unauthorized disbursements. required. h. Ensure the purchase of quality goods and prevent violations of laws or company policies. Validity of supplier number on all purchase orders. Restrict access to the supplier master file Verify all changes to the supplier master file Restrictions on who can make changes to the supplier master file. 13.9 For good internal control, which of the following duties can be performed by the same individual?
rais12_SM_CH13.docx