Term
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Definition
Sales Order Entry
Shipping
Billing
Cash Collections |
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Term
| Steps of Expenditure Cycle |
|
Definition
Ordering
Receiving
Validating Invoice
Cash Disbursement |
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Term
|
Definition
Update Master Data
Validate Time and attendance data
Prepare Payroll
Disburse Payroll |
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Term
|
Definition
Pick wrong item or quantity
Theft of inventory |
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|
Term
| Threats of Sales Order Entry |
|
Definition
-Incomplete/inaccurate orders
-Invalid orders
-uncollectable accounts
- stockouts or excess inv
- loss of customers |
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Term
|
Definition
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|
Term
| Threats of Cash Collection |
|
Definition
Theft of Cash
Cash Flow Problems |
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Term
|
Definition
Inaccurate inventory records
Purchase items not needed
Inflated Prices
Inferior/poor quality
Unreliable suppliers
Unauthorized suppliers
Kickbacks |
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Term
|
Definition
Accepting unordered items
Counting errors
Verifying receipt of services
Theft of inventory |
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Term
| Threats of Approving Sales Invoice |
|
Definition
Errors in Supplier invoices, paying for items not received
Fictitious vendors/suppliers
Accounts Payable posting errors |
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|
Term
| Threats of Cash Disbursement |
|
Definition
Pay for items not received
Duplicate payments
Theft of cash
Check Alteration
Missing prompt payment discounts
Cash flow problems |
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|
Term
| Threats of Updating Master Data |
|
Definition
-unauthorized changes to payroll master data
-inaccurate updating of payroll master data |
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|
Term
| Threats of validating time and attendance info |
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Definition
| -inaccurate time and attendance data |
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|
Term
| Threats of Preparing Payroll |
|
Definition
|
|
Term
| Threats of Disbursing Payroll |
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Definition
| -theft or fraudulent distriution of paychecks |
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