Using the following table as a guide, describe for each function A risk (an event or action that will cause the organization to fail to meet its goals/objectives). A control/process or use of technology that will address the risk. Function Risks Controls and Technology Logistics Purchasing Receiving Inventory (Debit ??? (Credit) SP 12-3 The following is a list of six control plans from this chapter or from Chapters 9, 10, and 11. This is followed be a list of five statements describing either the achievement of a control goal (i.e., a system success) or a system deficiency (i.e., a system failure). Match the five control goals or systems deficiencies with a control plan that would best achieve the desired goal or prevent the system deficiency. Each letter may be used only once, with one letter left over. Control Plans File completed and signed receiving report in receiving: Select vendors who can provide goods with appropriate quality Approve purchase order Compare input receipt data with PO Independent authorization to record receipt Reorder points and automatic generation of alerts Process Failures A purchasing agent ordered unneeded inventory items from a supplier company of which he is one of the officers. The vendor shipped goods that were never ordered. These receipts are recorded as received and put in stock. Goods were stolen by storeroom personnel. When the shortage was discovered, the storeroom personnel claimed that the goods had never been delivered to them from the receiving department. An organization seems to regularly run out of inventory for some of its most popular items. The materials going into production do not meet quality standards.
Using the following table as a guide, describe for each function
A risk (an event or action that will cause the organization to fail to meet its goals/objectives).
A control/process or use of technology that will address the risk.
Function
Risks
Controls and Technology
Logistics
Purchasing
Receiving
Inventory (Debit
??? (Credit)
SP 12-3
The following is a list of six control plans from this chapter or from Chapters 9, 10, and 11. This is followed be a list of five statements describing either the achievement of a control goal (i.e., a system success) or a system deficiency (i.e., a system failure). Match the five control goals or systems deficiencies with a control plan that would best achieve the desired goal or prevent the system deficiency. Each letter may be used only once, with one letter left over.
Control Plans
File completed and signed receiving report in receiving:
Select vendors who can provide goods with appropriate quality
Approve purchase order
Compare input receipt data with PO
Independent authorization to record receipt
Reorder points and automatic generation of alerts
Process Failures
A purchasing agent ordered unneeded inventory items from a supplier company of which he is one of the officers.
The vendor shipped goods that were never ordered. These receipts are recorded as received and put in stock.
Goods were stolen by storeroom personnel. When the shortage was discovered, the storeroom personnel claimed that the goods had never been delivered to them from the receiving department.
An organization seems to regularly run out of inventory for some of its most popular items.
The materials going into production do not meet quality standards.
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