Guilford Department store is a Barbadian Company that operates in Bridgetown, Barbados. The Company maintains a perpetual inventory system. Its accounting information follows a number of standard operating procedures. Employees in the accounting department post the data manually from the receiving reports, materials requisition forms, copies of purchase orders and other transactions, such as returns and adjustments to the inventory records. The source documents are filed by posting date. The inventory records are analysed after each posting to determine if the item should be reordered. One copy of a purchase requisition is prepared and sent to the purchasing department. The clerks select a vendor from a master vendor file, prepare four copies of the purchase order and update the vendor file to reflect the order. The purchase order is approved and distributed as follows: original copy to the vendor; copy number 2 is filed numerically with the corresponding purchase requisition attached. Copy 3 is forwarded to the receiving department. Copy 4 is sent to the accounting department. REQUIRED a. Prepare an analytical flow chart of the preceding procedures at Guilford department Store Ltd.
Guilford Department store is a Barbadian Company that operates in Bridgetown, Barbados. The Company maintains a perpetual inventory system. Its accounting information follows a number of standard operating procedures. Employees in the accounting department post the data manually from the receiving reports, materials requisition forms, copies of purchase orders and other transactions, such as returns and adjustments to the inventory records. The source documents are filed by posting date. The inventory records are analysed after each posting to determine if the item should be reordered. One copy of a purchase requisition is prepared and sent to the purchasing department. The clerks select a vendor from a master vendor file, prepare four copies of the purchase order and update the vendor file to reflect the order. The purchase order is approved and distributed as follows: original copy to the vendor; copy number 2 is filed numerically with the corresponding purchase requisition attached. Copy 3 is forwarded to the receiving department. Copy 4 is sent to the accounting department. REQUIRED a. Prepare an analytical flow chart of the preceding procedures at Guilford department Store Ltd.
Accounting Information Systems
10th Edition
ISBN:9781337619202
Author:Hall, James A.
Publisher:Hall, James A.
Chapter3: Ethics, Fraud, And Internal Control
Section: Chapter Questions
Problem 13P
Related questions
Question
![Guilford Department store is a Barbadian Company that operates in Bridgetown, Barbados. The
Company maintains a perpetual inventory system. Its accounting information follows a number
of standard operating procedures. Employees in the accounting department post the data
manually from the receiving reports, materials requisition forms, copies of purchase orders and
other transactions, such as returns and adjustments to the inventory records. The source
documents are filed by posting date. The inventory records are analysed after each posting to
determine if the item should be reordered. One copy of a purchase requisition is prepared and
sent to the purchasing department.
The clerks select a vendor from a master vendor file, prepare four copies of the purchase order
and update the vendor file to reflect the order. The purchase order is approved and distributed as
follows: original copy to the vendor; copy number 2 is filed numerically with the corresponding
purchase requisition attached. Copy 3 is forwarded to the receiving department. Copy 4 is sent
to the accounting department.
REQUIRED
a. Prepare an analytical flow chart of the preceding procedures at Guilford department Store Ltd.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F96295916-cd81-4e36-b893-dadaa3009236%2F6e42cc33-156b-492c-a5eb-35979692cf1d%2Fbud8954_processed.png&w=3840&q=75)
Transcribed Image Text:Guilford Department store is a Barbadian Company that operates in Bridgetown, Barbados. The
Company maintains a perpetual inventory system. Its accounting information follows a number
of standard operating procedures. Employees in the accounting department post the data
manually from the receiving reports, materials requisition forms, copies of purchase orders and
other transactions, such as returns and adjustments to the inventory records. The source
documents are filed by posting date. The inventory records are analysed after each posting to
determine if the item should be reordered. One copy of a purchase requisition is prepared and
sent to the purchasing department.
The clerks select a vendor from a master vendor file, prepare four copies of the purchase order
and update the vendor file to reflect the order. The purchase order is approved and distributed as
follows: original copy to the vendor; copy number 2 is filed numerically with the corresponding
purchase requisition attached. Copy 3 is forwarded to the receiving department. Copy 4 is sent
to the accounting department.
REQUIRED
a. Prepare an analytical flow chart of the preceding procedures at Guilford department Store Ltd.
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Recommended textbooks for you
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
![Auditing: A Risk Based-Approach (MindTap Course L…](https://www.bartleby.com/isbn_cover_images/9781337619455/9781337619455_smallCoverImage.gif)
Auditing: A Risk Based-Approach (MindTap Course L…
Accounting
ISBN:
9781337619455
Author:
Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:
Cengage Learning
![College Accounting (Book Only): A Career Approach](https://www.bartleby.com/isbn_cover_images/9781337280570/9781337280570_smallCoverImage.gif)
College Accounting (Book Only): A Career Approach
Accounting
ISBN:
9781337280570
Author:
Scott, Cathy J.
Publisher:
South-Western College Pub
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
![Auditing: A Risk Based-Approach (MindTap Course L…](https://www.bartleby.com/isbn_cover_images/9781337619455/9781337619455_smallCoverImage.gif)
Auditing: A Risk Based-Approach (MindTap Course L…
Accounting
ISBN:
9781337619455
Author:
Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:
Cengage Learning
![College Accounting (Book Only): A Career Approach](https://www.bartleby.com/isbn_cover_images/9781337280570/9781337280570_smallCoverImage.gif)
College Accounting (Book Only): A Career Approach
Accounting
ISBN:
9781337280570
Author:
Scott, Cathy J.
Publisher:
South-Western College Pub
Century 21 Accounting Multicolumn Journal
Accounting
ISBN:
9781337679503
Author:
Gilbertson
Publisher:
Cengage
![College Accounting, Chapters 1-27](https://www.bartleby.com/isbn_cover_images/9781337794756/9781337794756_smallCoverImage.gif)
College Accounting, Chapters 1-27
Accounting
ISBN:
9781337794756
Author:
HEINTZ, James A.
Publisher:
Cengage Learning,