Question

Internal control system is a pivotal part of corporate governance. Assuming you are the manager of...

Internal control system is a pivotal part of corporate governance. Assuming you are the manager of purchasing department, design a comprehensive set of procedures that helps prevent staffs from making personal gains from their positions.

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Internal control system for purchasing department:

To prevent staffs from making personal gains from their positions,we have to ensure proper separations of duties,assign related buying functions to different people.With proper segregation,no single staff has complete control over all buying activities.We should have different people for;

a)Approve Purchase;

b)Receive ordered materials;

c)Approve invoices for payment;

d)Review and reconcile financial records;

e)Perform Inventory Counts

We should also timely review supplier's invoices,packing slips and purchase orders.Check accuracy of the information for prior payment,quantity ordered and price charged.

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
You are the internal auditor of SuperHero Ltd and you have made the following notes during...
You are the internal auditor of SuperHero Ltd and you have made the following notes during the audit of the company’s inventory management activities: SuperHero Ltd’s raw materials are mainly high-cost electronic components. The raw materials are kept in a locked warehouse. The warehouse team has a manager and four clerks. Raw materials are removed from the warehouse only on written or oral authorization of one of the production supervisors of the factory. SuperHero Ltd uses a period inventory system....
You are the internal auditor of SuperHero Ltd and you have made the following notes during...
You are the internal auditor of SuperHero Ltd and you have made the following notes during the audit of the company’s inventory management activities: SuperHero Ltd’s raw materials are mainly high-cost electronic components. The raw materials are kept in a locked warehouse. The warehouse team has a manager and four clerks. Raw materials are removed from the warehouse only on written or oral authorization of one of the production supervisors of the factory. SuperHero Ltd uses a period inventory system....
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...
You are the general manager of a trendy pub restaurant in an upscale part of a...
You are the general manager of a trendy pub restaurant in an upscale part of a large metropolitan area. You have local musicians that perform regularly. You have a great staff that gets along well and enjoys working together. Strong customer volume includes regular locals and new guests. The customers enjoy their interaction with the staff and bartenders and thus will often buy them a drink. When the staff gets off work before closing they will often become customers with...
You are the internal audit senior responsible for conducting an assurance engagement of the XYZ Company payroll process.
You are the internal audit senior responsible for conducting an assurance engagement of the XYZ Company payroll process. This process has not been audited for three years and, as such, is due in the normal audit cycle. There have been no significant changes since the previous audit, that is, there were no system changes, no reorganization of personnel, and no substantive procedural changes. However, during the last assurance engagement, the internal audit function identified several observations, some of which were...
Government is cleaning up the way companies do business after accounting and governance scandals rocked investor...
Government is cleaning up the way companies do business after accounting and governance scandals rocked investor confidence and damaged the reputation of companies large and small. The Sarbanes-Oxley Act (SOX) of 2002 was enacted in response to the high-profile Enron and World Com financial scandals to protect shareholders and the public from accounting errors and fraudulent practices by organizations. One primary component of the SOX is the definition of which records are to be stored and for how long. For...
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...
Background You are a manager in the audit division at Miller Yates Howarth (MYH), an accounting...
Background You are a manager in the audit division at Miller Yates Howarth (MYH), an accounting firm with offices throughout the major regional centres of NSW and Queensland. Although a medium sized firm by national standards, MYH is the second largest regional accounting firm in Australia. Most of MYH’s audit clients are in the agriculture, mining, manufacturing and property industries. All of those industries are currently under pressure, either from a downturn in commodity prices or fierce competition from overseas...
You are a manager in the audit division at Miller Yates Howarth (MYH), an accounting firm...
You are a manager in the audit division at Miller Yates Howarth (MYH), an accounting firm with offices throughout the major regional centres of NSW and Queensland. Although a medium sized firm by national standards, MYH is the second largest regional accounting firm in Australia. Most of MYH’s audit clients are in the agriculture, mining, manufacturing and property industries. All of those industries are currently under pressure, either from a downturn in commodity prices or fierce competition from overseas competitors....
The purposes of this article, capital assets are defined as tangible or intangible assets that are...
The purposes of this article, capital assets are defined as tangible or intangible assets that are used in operations and that have useful lives of more than one year, such as land and improvements to land, buildings and building improvements; vehicles; machinery; equipment; and sewer, water and highway infrastructures. Risk Assessment: A municipality’s capital assets are subject to a number of risks. Local officials must be cognizant of these risks as they seek to effectively manage their municipality’s capital assets....
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT