Question

For each of the disbursement system procedures listed below, state whether the procedure is consistent with good internal control.

1.		The purchasing department acts on purchase requisitions issued by the parts department.		select Consistent or Inconsistent                                                          ConsistentInconsistent
2.		A software application generates prenumbered purchase orders based on information submitted by buyers in purchasing.		select Consistent or Inconsistent                                                          ConsistentInconsistent
3.		Receiving has complete access to purchase order information in the IT system.		select Consistent or Inconsistent                                                          ConsistentInconsistent
4.		When goods are received, the receiving department logs the shipment in the IT system by indicating that the purchase order was received and forwards this electronically to accounts payable.		select Consistent or Inconsistent                                                          ConsistentInconsistent
5.		When the vendor invoice is received, it is entered into the IT system and matched electronically with purchase order and receiving information. Discrepancies are printed on an exception report for follow-up by accounts payable personnel.		select Consistent or Inconsistent                                                          ConsistentInconsistent
6.		The software application checks the clerical accuracy of information on vendor invoices. Discrepancies are printed on an exception report for follow-up by accounts payable personnel.		select Consistent or Inconsistent                                                          ConsistentInconsistent
7.		A prenumbered disbursement is prepared and forwarded along with supporting documentation to the plant controller who reviews and approves the voucher.		select Consistent or Inconsistent                                                          ConsistentInconsistent
8		Supporting documents are returned to accounts payable for filing, and approved disbursement vouchers are forwarded to corporate headquarters for payment.		select Consistent or Inconsistent                                                          ConsistentInconsistent
9.		A report listing checks issued by corporate headquarters is received and promptly filed by accounts payable.

Answer 1

1- In-Consistent- As Purchase Requisition is a proof of document for the purchase department to start the work progress. It acts as a purchase order document for the employees to purchase the goods or for ordering the goods behalf of the company

2- Consistent- As Prenumbered Purchase order will be given to the Persons as per the information provided by them to the purchasing team

3-Consistent- As we have the full access to check whether the orders have been recieved as per our request and we are supposed to pay for that only.

4-Consistent- If the items are properly recieved we will record the purchasing database as recorded if not,we will resend it by having a bill named "unauthorized shipment refused".

5-Consistent

6-Consistent

7- Inconsistent

8-Consistent

9- Consistent