Controls Of Flows

Controls for Outflows
Farishta Hassanpur, Jeremy Keturi, Daniel Meixner
ACC 544
September 22, 2011
Vaughn Johnson
Controls for Outflows
This questionnaire will assist most manufacturing and service businesses in determining if correct internal control practices have been implement for outflows. Most outflows will f all(prenominal) into one of the following sestet categories: purchasing, accounts collectible, cash disbursements, finance, investment, and payroll.
Control Activities for Purchasing and Accounts PayableAddresses Fraud or Significant Risk?Control Has Been Implemented?Automated? effectively Designed?Test Control?CommentsProper segregation of duties should be in place and operating for the following responsibilies: ? initiate grease ones palms orders. ? approve purchase orders. ? place the purchase orders. ? Receive the orders. ? lay to accounts payable. ? Pay accounts payable. ? custody of inventory or assets. ? Record property for purchases and payments. ? Reconciliation of purchases and accounts payable.



The purchasing department, accounting department, receiving department, and shipping department should all be independent of each other.Accountants should only record accounts payable when supporting documents are in order. Accountants should record purchases and payable as of the date the goods or services are received. Purchases over a specified dollar amount should be approved by more than one person.Checks should be prenumbered and all conk outs accounted for.Purchases journal should be tested to look for patterns and controls.Incoming purchases should be compared with purchase orders to manipulate everything ordered arrived and receiving report should be completed.Accounts payable department should check the mathematical accuracy of vendor invoices.The...If you want to get a full essay, order it on our website: Orderessay



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