RISK ANALYSIS AND INTERNAL CONTROL The following describes the purchases and cash disbursements procedures for a lawn and garden supply wholesaler that uses a central computer system with distributed terminals in departments. The inventory control clerk visually reviews inventory levels from his computer terminal to identify items that need to be ordered. He then prints and sends a hard copy purchase requisition for the needed items to the purchasing agent. Based on the requisition, the purchasing agent selects a vendor and adds a digital record to the purchase order file from his terminal in the purchasing department. The clerk then prints a hard copy of the purchase order and mails it to the vendor. Finally, the purchasing agent destroys the purchase requisition, which is no longer needed since the relevant details are on the PO. When the materials arrive at the receiving department a packing slip. The clerk then manually creates a two-part hard copy receiving report. One copy of the receiving report is sent to Inventory Control and the other is sent to the purchasing department. The packing slip is sent with inventory to the warehouse. When the purchasing agent receives the receiving report, he closes the digital PO record and adds a record to the digital receiving report file. He then destroys the hard copy receiving report, which is no longer needed. Upon receipt of receiving report copy, the inventory control clerk updates the inventory subsidiary ledger to record the receipt. The clerk then destroys the hard copy receiving report. Vendors send hard copy invoices to the AP clerk for processing. When the clerk receives an invoice, she reconciles it with the digital purchase order and receiving report. She then selects a due date and adds a record to the Vendor Invoice file, which serves the AP Subsidiary ledger. The clerk then files the invoice in the department. On the due date the computer system automatically prints a check, mails it to the vendor, closes the Vendor Invoice record to discharge the liability, and records the payment in the Cash Disbursement file. Describe the uncontrolled risks in the system.
Critical Path Method
The critical path is the longest succession of tasks that has to be successfully completed to conclude a project entirely. The tasks involved in the sequence are called critical activities, as any task getting delayed will result in the whole project getting delayed. To determine the time duration of a project, the critical path has to be identified. The critical path method or CPM is used by project managers to evaluate the least amount of time required to finish each task with the least amount of delay.
Cost Analysis
The entire idea of cost of production or definition of production cost is applied corresponding or we can say that it is related to investment or money cost. Money cost or investment refers to any money expenditure which the firm or supplier or producer undertakes in purchasing or hiring factor of production or factor services.
Inventory Management
Inventory management is the process or system of handling all the goods that an organization owns. In simpler terms, inventory management deals with how a company orders, stores, and uses its goods.
Project Management
Project Management is all about management and optimum utilization of the resources in the best possible manner to develop the software as per the requirement of the client. Here the Project refers to the development of software to meet the end objective of the client by providing the required product or service within a specified Period of time and ensuring high quality. This can be done by managing all the available resources. In short, it can be defined as an application of knowledge, skills, tools, and techniques to meet the objective of the Project. It is the duty of a Project Manager to achieve the objective of the Project as per the specifications given by the client.
RISK ANALYSIS AND INTERNAL CONTROL The following describes the purchases and cash disbursements procedures for a lawn and garden supply wholesaler that uses a central computer system with distributed terminals in departments. The inventory control clerk visually reviews inventory levels from his computer terminal to identify items that need to be ordered. He then prints and sends a hard copy purchase requisition for the needed items to the purchasing agent. Based on the requisition, the purchasing agent selects a vendor and adds a digital record to the purchase order file from his terminal in the purchasing department. The clerk then prints a hard copy of the purchase order and mails it to the vendor. Finally, the purchasing agent destroys the purchase requisition, which is no longer needed since the relevant details are on the PO. When the materials arrive at the receiving department a packing slip. The clerk then manually creates a two-part hard copy receiving report. One copy of the receiving report is sent to Inventory Control and the other is sent to the purchasing department. The packing slip is sent with inventory to the warehouse. When the purchasing agent receives the receiving report, he closes the digital PO record and adds a record to the digital receiving report file. He then destroys the hard copy receiving report, which is no longer needed. Upon receipt of receiving report copy, the inventory control clerk updates the inventory subsidiary ledger to record the receipt. The clerk then destroys the hard copy receiving report. Vendors send hard copy invoices to the AP clerk for processing. When the clerk receives an invoice, she reconciles it with the digital purchase order and receiving report. She then selects a due date and adds a record to the Vendor Invoice file, which serves the AP Subsidiary ledger. The clerk then files the invoice in the department. On the due date the computer system automatically prints a check, mails it to the vendor, closes the Vendor Invoice record to discharge the liability, and records the payment in the Cash Disbursement file.
- Describe the uncontrolled risks in the system.
- These are three uncontrilled risks i see with the problem but I am unsure how they are an issue, As in what part of the problem states there is a missapprpration if cash and so on. Please help
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Misappropriation of cash and inventory
Receiving wrong items or quantity
Unauthorized vendor purchases
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