Question

Within the client’s IT system, supplier information is contained in a supplier master file (SMF). Each...

Within the client’s IT system, supplier information is contained in a supplier master file (SMF). Each supplier has a unique supplier code. If the purchasing clerk attempts to place an order from a supplier not in the SMF, the order can not be processed.

Required:
Explain what type of control the above information describes. Discuss the control’s strengths and weaknesses.
Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

The control described herein is a Preventive control. The purpose of building this control is to ensure that fraud does not take place.

The below could be described as this control's strength's and weaknesses :

Strenghts :

- Prevents farund by ensuring that purchases are being made from authorised vendors only.

- It ensures that payments are being made to correct supplier.

- It has depository of relevant data of vendor like communication data , tax data etc.

Weakness :

- In correct infomation in the file may lead to faliure of this control.

- Dummy or duplicate vendor entries may lead to payment being transmitted to wrong persons.

- It may happen that orders are placed to wrong vendor by making unauthorised entries in the file.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
DURAPLAST Company Ltd., opened its doors in 1979 as a wholesale supplier of plumbing equipment, tools,...
DURAPLAST Company Ltd., opened its doors in 1979 as a wholesale supplier of plumbing equipment, tools, and parts to hardware stores, home-improvement centers, and professional plumbers in the Accra-Tema Metropolitan area. Over the years they have expanded their operations to serve customers across the nation and now employ over 200 people as technical representatives, buyers, warehouse workers, and sales and office staff. Most recently DURAPLAST has experienced fierce competition from the large online discount stores such as Qualiplast and Interplast....
Depict the basic activities performed in Lexsteel's expenditure cycle. The following additional information supplements that figure:...
Depict the basic activities performed in Lexsteel's expenditure cycle. The following additional information supplements that figure: Because of cash flow problems, Lexsteel always pays suppliers on the last possible day before incurring a penalty for late payment. Supplier invoices are processed and paid weekly. Every Friday, the accounts payable clerk reviews and approves all invoices with a due date the following week The purchasing manager reviews and approves all purchases prior to e-mailing them to suppliers After counting and inspecting...
The term “documented information” is defined in the ISO 14001: 2015 standard as “information required to...
The term “documented information” is defined in the ISO 14001: 2015 standard as “information required to be controlled and maintained by an organization and the medium on which it is contained”. Additionally, it is noted that documented information can be in any format or media and can come from any source as well as documented information can refer to the following: 1) the environmental management system (EMS), including related processes; 2) information created in order for the organization to operate,...
Harlan Venture Inc. (HV) operates a restaurant named Harlan's in Toronto. The shareholder, Stephen Painter, is...
Harlan Venture Inc. (HV) operates a restaurant named Harlan's in Toronto. The shareholder, Stephen Painter, is concerned whether the system and controls in place at the restaurant are appropriate to monitor and control the operations of the restaurant and to make sure that employees don't steal. He provides the following information: Restaurant operations The restaurant manager's duties include looking after reservations, seating customers, and managing the restaurant's operations. Servers take the customer orders and enter them into a system that...
Please answer in JAVA IDS 401 Assignment 4 Deadline In order to receive full credit, this...
Please answer in JAVA IDS 401 Assignment 4 Deadline In order to receive full credit, this assignment must be submitted by the deadline on Blackboard. Submitting your assignment early is recommended, in case problems arise with the submission process. Late submissions will be accepted (but penalized 10pts for each day late) up to one week after the submission deadline. After that, assignments will not be accepted. Assignment The object of this assignment is to construct a mini-banking system that helps...
Codger Corp. — Internal Controls Codger Corp. (CC or the “Company”) is a U.S. public company...
Codger Corp. — Internal Controls Codger Corp. (CC or the “Company”) is a U.S. public company that files quarterly andannual reports with the Securities and Exchange Commission (SEC). CC is a leading retail chain operating more than 100 department stores across the continental United States. CC department stores offer customers a variety of nationally advertised products, including clothing, shoes, jewelry, and other accessories. The Company’s supply chain ofproducts is managed through a single warehouse and distribution facility located in Kansas...
Background ABC Retailers Inc. (ABC or the “Company”) is a U.S. public company that files quarterly...
Background ABC Retailers Inc. (ABC or the “Company”) is a U.S. public company that files quarterly and annual reports with the Securities and Exchange Commission (SEC). ABC is a leading retail chain operating more than 100 department stores across the continental United States. ABC department stores offer customers a variety of nationally advertised products, including clothing, shoes, jewelry, and other accessories. The Company’s supply chain of products is managed through a single warehouse and distribution facility located in Kansas City,...
Johnson Company— Internal Controls Johnson Company Inc. (Johnson Company or the “Company”) is a U.S. public...
Johnson Company— Internal Controls Johnson Company Inc. (Johnson Company or the “Company”) is a U.S. public company that files quarterly and annual reports with the Securities and Exchange Commission (SEC). JOHNSON COMPANY is a leading retail chain operating more than 500 department stores across the continental United States. JOHNSON COMPANY department stores offer customers a variety of nationally advertised products, including cookware, shoes, jewelry, perfume, and other accessories. The Company’s supply chain of products is managed through a single warehouse...
Problem 1 You are an internal audit manager in a central government department that pays subsidies...
Problem 1 You are an internal audit manager in a central government department that pays subsidies to agricultural businesses involved in the production of basic foodstuffs. You will soon be undertaking an internal audit of the claims processing unit in your department. In preparation for the assignment you are reviewing the audit file on the previous audit carried out three years earlier. You find the following extract from one of the previous internal audit’s planning schedules: • “The unit receives...
Como Tool and Die was a second-tier component supplier to the auto industry. Its largest customer...
Como Tool and Die was a second-tier component supplier to the auto industry. Its largest customer was Ford Motor Company. Como had a reputation for delivering a quality product. During the 1980s and the early 1990s, Como’s business grew because of its commitment to quality. Emphasis was on manufacturing operations, and few attempts were made to use project management. All work was controlled by line managers who, more often than not, were overburdened with work. The culture at Como underwent...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT