THE EXPENDITURE CYCLE: PURCHASING AND CASH DISBURSEMENTS

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THE EXPENDITURE CYCLEPURCHASING AND CASH
DISBURSEMENTS

• Chapter 11

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Control Examples(Note These are just some
examples -- I want you to think about more and to
think about WHY they are necessary -- e.g., what
could happen if these controls were not there?)

• Authorization -- purchase requisitions, POs,
• Prenumber documents -- POs, checks
• Reconciliations -- Inventory, subsidiary
  control acct,
• Separation of duties -- shipping receiving
  inventory purchase order approval
• Computer checks -- validity (inventory item s,
  vendor code s) field checks limit checks
  range checks (delivery dates) reasonable checks
  (quantities requisitioned or received)
  completeness checks sign checks (inventory
  on-hand balances)