a) Should every company switch from the traditional three-way matchingprocess (purchase orders, receiving reports, and supplier invoices) to the two-way match (purchase orders and receiving reports) used in evaluated receiptsettlement (ERS)? Why, or why not?b) Imagine you had just started an internship and you visited your first clientwho gave you the following list some they do:1. Cancellation of the voucher package by the cashier once checks are signed.2. Prenumbering and periodically accounting for all internal source documents3. Tokenization4. Periodic physical count of inventory5. Mailing Monthly Statements6. Reconciliation of invoices with packing lists and sales order7. Performing data integrity controls8. Using requests for proposals to solicit competitive bids for capital assets9. Using a planned production schedule10. Use biometric authenticationRequiredChoose five of the activities and (1) Identify which business cycle(s) the activityis mostly associated with, (2) provide explanations that you think would helpyour client understand the purpose those activities serve. Your answer shouldarticulate the sort of issue(s) each of the activity can solve when properlyimplemented.

“Since you have asked multiple questions, we will solve the first question for you. If you want any…

a) Should every company switch from the traditional three-way matching process (purchase orders, receiving reports, and supplier invoices) to the two- way match (purchase orders and receiving reports) used in evaluated receipt settlement (ERS)? Why, or why not?

a) Should every company switch from the traditional three-way matching process (purchase orders, receiving reports, and supplier invoices) to the two- way match (purchase orders and receiving reports) used in evaluated receipt settlement (ERS)? Why, or why not?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Are there significant distinctions between conducting adjustment and closing for a service firm and…

A: Service Industry Service industry mainly focus on the providing services to the customers and the…

Q: A. What document is used to create the Sales Order in the Revenue Cycle and where does itcome from?…

A: Answer a: Sales order is created by using a document formed by SAP.

Q: Most of the accounting cycles have journal entries that accompany activities of each cycle.Which of…

A: Recording transaction in journal is termed as journalizing the entries. Transaction are first…

Q: Most of the accounting cycles have journal entries that accompany the activities of each cycle.…

A: A process of identifying a transaction, analyzing it and then recording the same in the books is…

Q: Which of the following in NOT a potential benefit of granting trade credit? O May allow quicker…

A: Trade credit is a business arrangement where a seller allows a buyer to purchase goods or services…

Q: or the sake of adequate audit trail, sale staff can accept order from a client through instant…

A: Audit trail is very important in audit it checks the record by checking and verifying the…

Q: Which of the following procedure is designed to prevent the company from ordering unnecessary items?…

A: D) Approval of purchase requisitions is the procedure designed to prevent the company from ordering…

Q: All of the following functions are normally found within an organization's sales/collection except:…

A: An entity involved in sale of merchandise has to keep a track of multiple functions such as receipt…

Q: substantive test of transactions commonly used to test the accuracy objective for acquisitions is "…

A: It's an audit procedure which examines financial statements and supporting documentation to see if…

Q: Which of the following statements best explains the relationship between the acquisition/payment…

A: Solution Explanation - Sales collection process is a series of operating events that collectively…

Q: the following situations may give rise to unearned r ne: Providing trade credit to customers.…

A: Unearned revenue is income received by a person or business in exchange for a service or product…

Q: what are the objectives of eliminating the receiving function. What accounting/audit problems need…

A: Receiving Department: The receiving department is in obligation of inspection and the receiving…

Q: Describe post sales service arrangements the firm does or should provide

A: After sale services help the companies achieve customer satisfaction and retain their customers.…

Q: d. The sales department approves sales credit memos as the result of product returns and forwards…

A: The sales department of the company is responsible for recording the sales made by the company…

Q: What is the role of a sales invoice in the revenue recognition process?

A: The revenue recognition process is a systematic and structured set of regulations, instructions, and…

Q: For sellers of goods, the revenue recognition principle generally requires that revenues be recorded…

A: The objective of the question is to understand when the revenue recognition principle allows sellers…

Q: One internal control that companies often have is an official “approved vendor” list for purchases.…

A: The approved vendor list (AVL) can be referred to as the list containing the information of the…

Q: What is meant by GAAG? Why should all companies follow GAAP in reporting to external users?

A: Generally Accepted Accounting Principles is what is meant by the abbreviation GAAP. Companies use…

Question

a) Should every company switch from the traditional three-way matching
process (purchase orders, receiving reports, and supplier invoices) to the two-
way match (purchase orders and receiving reports) used in evaluated receipt
settlement (ERS)? Why, or why not?
b) Imagine you had just started an internship and you visited your first client
who gave you the following list some they do:
1. Cancellation of the voucher package by the cashier once checks are signed.
2. Prenumbering and periodically accounting for all internal source documents
3. Tokenization
4. Periodic physical count of inventory
5. Mailing Monthly Statements
6. Reconciliation of invoices with packing lists and sales order
7. Performing data integrity controls
8. Using requests for proposals to solicit competitive bids for capital assets
9. Using a planned production schedule
10. Use biometric authentication
Required
Choose five of the activities and (1) Identify which business cycle(s) the activity
is mostly associated with, (2) provide explanations that you think would help
your client understand the purpose those activities serve. Your answer should
articulate the sort of issue(s) each of the activity can solve when properly
implemented.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step 3

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Requirement a. What are the accounting requirements for a correct sales cutoff? A. A shipment should be recorded as a sale when the risks of ownership transfer to the buyer and collectability is reasonably assured. B. A shipment should be recorded as a sale when the merchandise is shipped. C. A shipment should be recorded as a sale when the payment for the merchandise has beeb received by the seller. D. A shipment should be recorded as a sale when the merchandise is received by the purchaser.
Which orders would you advise the company to accept first, those for A, B, or C? Which orders second? Third? Product A Product B Product C
Question 2 All of the following controls can ensure input validity of shipping notice, except? O Compare shipment to sales order and picking ticket O Independent billing authorization O Compare shipping notice to sales order master data O Review file of open sales order Apts
1. Please explain whether the item is an example of IPE from a transaction process, and 2. Please explain why or why not in some level of detail: Item IPE? Why or why not? A. A payroll exception report prepared by ADP B. A report containing new vendors approved by the purchasing department C. An unpaid vendor invoice D. A list of product liability claims from customers E. The allocation of overhead to various products in production F. Warranty conditions provided to customers on sales contracts G. The bank reconciliation prepared by the Company's bank
The accounts payable department usually has responsibility for approving acquisitions for payment by comparing the details on the: vendor's invoice and the receiving report only. purchase requisition, purchase order, and receiving report. vendor's invoice and the purchase requisition only. purchase order, receiving report, and vendor's invoice
One such issue is the Sale with Right of Return. Discuss how do you recognize revenue when the customer has the right to return
Which assertion is most likely being tested when an auditor vouches transactions from the sales Journal to the sales orders? a. cutoff b. rights c. completeness d. accuracy
What type of internal control is matching supporting documents before paying an invoice?
Please answer with reason for all why the option is correct and why the other options are incorrect
Which of the following frames would best enable an auditor to test a sales/receivables system to determine that receivables are supported by all required documentation ? (a) Customer list (b) Sales invoice log Sales order log (d) Shipping log
Q17
A receiving report is filled out when we receive: An inventory shipment from a vendor. Items that a customer is authorized to return from a previous sale. A payment on a customer's account. a and b only. Answer is not the First option!