Expenditure Cycle: Purchase and Cash Disbursements

Based Activity
1. Ordering of Goods, Supplies, and Services
2. Receiving and Storing Goods, Supplies, and Services
3. Pay for Goods, Supplies, and Services
Alternative Methods of inventory control
1. Mmaterials Requirements Planning (MRP)
2. Just-in-time (JIT)
Destination of Expenditure Cycle
1. All transactions are properly authorized
2. All recorded transactions are valid
3. All transactions are valid and authorized has been noted
4. Assets safeguarded from the risk of loss or theft
5. Business activities are performed efficiently and effectively
Threats
1. Ordering of goods
  1. Preventrunning out and/or excess inventory
  2. Requesting unneeded items
  3. Buy at inflated prices
  4. Buy low quality goods
  5. Buy from a supplier who is not authorized
2. Receiving and Storing goods
  1. Not receive goods ordered
  2. Make a mistake in the calculation
  3. Stealing Supplies
3. Pay for goods
  1. Failed to catch errors in vendor invoices
  2. Pay for goods not received
  3. Failed to take advantage of purchase discounts available
  4. paying the same invoice twice
  5. Error record and enter data in accounts payable
  6. Misappropriate cash, check, or EFT
Common control issues
1. Loss of data
2. Poor performance

Resumo de Recurso

	Criado por isnainifitri88 quase 13 anos atrás