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Purchasing, Inventory, and Cash Disbursements
book

Purchasing, Inventory, and Cash Disbursements

by Glenn Helms
April 2018
Intermediate to advanced content levelIntermediate to advanced
144 pages
3h 36m
English
Wiley
Content preview from Purchasing, Inventory, and Cash Disbursements

Chapter 1 THE ACQUISITIONS CYCLE: ORDERING, RECEIVING, AND WAREHOUSING

LEARNING OBJECTIVES

After completing this section, you should be able to do the following:

     Recall typical controls in the acquisitions cycle's ordering, receiving, and warehousing phases.

     Identify various forms (electronic or paper) used in the acquisitions cycle's ordering, receiving, and warehousing phases.

     Recall the processes in the acquisition cycle's ordering, receiving, and warehousing phases.

     Identify various types of errors or fraud that can occur if the acquisition cycle does not have adequate procedures or segregation of duties in the ordering, receiving, and warehousing phases.

The Acquisitions Cycle

The acquisitions cycle exists in all types of entities—government, not-for-profit, and for profit. Some of the most common ordering, receiving, and warehousing internal control objectives are

     authorization for the procurement of all goods and services at agreed-upon prices from approved vendors.

     all goods and services received are recorded and classified correctly and accurately.

     damaged or substandard goods are promptly identified and appropriate action is taken.

     payment is made for goods and services received and they have requisite quality.

     all goods are adequately safeguarded.

In many for profit entities, such as retail establishments and manufacturers, most transactions in the acquisitions cycle are for the procurement of either finished ...

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Publisher Resources

ISBN: 9781119512264Purchase book