6. Paying the same invoicetwicef. Conduct an automated comparison oftotal change in cash to total changes inaccounts payable.7. Stockoutsg. Adopt a perpetual inventory system.8. Purchasing items atinflated pricesh. Require purchasing agents to dis-close financial or personal interests insuppliers.9. Misappropriation of cashi. Require purchases to be made only fromapproved suppliers.j. Restrict access to the supplier master10. Purchasing goods ofinferior quality11. Wasted time and costk. Restrict access to blank checks.of returning unorderedmerchandise to suppliers1. Issue checks only for complete voucherpackages (receiving report, supplierinvoice, and purchase order).12. Accidental loss ofpurchasing data13. Disclosure of sensitivesupplier information (e.g.banking data)m. Cancel or mark "Paid" supporting docu-ments in voucher package when check isissued.n. Carry out a regular backup of expenditurecycle database.o. Train employees in how to properlyrespond to gifts or incentives offered bysuppliers.p. Hold purchasing managers responsiblefor costs of scrap and rework.q. Ensure that someone other than the ca-shier reconciles bank accounts. 13.4 Match the threats in the left column to appropriate control procedures in the right col-umn. More than one control may be applicable.ThreatControl Procedure1. Failing to take availablepurchase discounts forprompt paymenta. Accept only deliveries for which an ap-proved purchase order exists.b. Document all transfers of inventory.2 Recording and postingeIrors in accounts payable3. Paying for items notc. Restrict physical access to inventory.received4. Kickbacksd. File invoices by due date.5. Theft of inventorye. Maintain a cash budget.

1. Failing to take available purchase discounts for prompt payment. d- file invoices by due date e-…

Im the ignt col- umn. More than one control may be applicable. Threat Control Procedure 1. Failing to take available purchase discounts for a. Accept only deliveries for which an ap- proved purchase order exists. prompt payment 2. Recording and posting erors in accounts payable b. Document all transfers of inventory. 3. Paying for items not received c. Restrict physical access to inventory. 4. Kickbacks 5. Theft of inventory d. File invoices by due date. e. Maintain a cash budget.

Im the ignt col- umn. More than one control may be applicable. Threat Control Procedure 1. Failing to take available purchase discounts for a. Accept only deliveries for which an ap- proved purchase order exists. prompt payment 2. Recording and posting erors in accounts payable b. Document all transfers of inventory. 3. Paying for items not received c. Restrict physical access to inventory. 4. Kickbacks 5. Theft of inventory d. File invoices by due date. e. Maintain a cash budget.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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