whata re some risks and internal controls in the purchasing cycle
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describe any four threats in revenue cycle and identify its control
Maria D.
Required: 1. Describe the risks associated with the system depicted in the flowchart below. 2. Describe the physical controls needed to mitigate each risk. Purchases Department Receiving Department Central Computer Facility Accounts Payable Department Warehouse Packing Slip Vendor PO Invoice Identify Items Prepare Receiving report Accounting System Reconcile documents and set up Liability Reconcile and Update Inventory Packing Slip Rec Reprt Inventory Records Account Payable
Akash M.
The following internal controls for the acquisition and payment cycle were selected from a standard internal control questionnaire: 1. Approved purchase orders are required for all acquisitions of goods. 2. Pre-numbered receiving reports are prepared as support for acquisitions and numerically accounted for. 3. Dates on receiving reports are compared with vendors' invoices before entry into the acquisitions journal. 4. Account classifications are reviewed by someone other than the preparer. 5. All supporting documents are canceled after checks are signed or electronic fund transfers are approved. 6. The authorized signer compares data on supporting documents with checks and electronic funds transfer authorizations. 7. Vendors' invoices are recalculated before payment. 8. All checks are signed by the owner or manager. 9. Checks are mailed by the owner or manager or a person under her supervision after signing. 10. The accounts payable master file is updated, balanced, and reconciled to the general ledger monthly.
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