Term
| From where do adjusting entries usually come? |
|
Definition
| Controller, after the trial balance has been prepared |
|
|
Term
| responsibility accounting system |
|
Definition
| preparing performance reports that contain data only about items that a specific organizational unit controls is an example of what? |
|
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Term
|
Definition
| What is the business intelligence technique used to discover non hypothesized relationships called? |
|
|
Term
| innovation and learning; internal, customer, financial |
|
Definition
| Which of the following shows the implied linkages among the portions of the balanced scorecard? |
|
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Term
|
Definition
| Writing a query to identify trends in sales of product by salesperson and by by customer over the past five years is an example of what? |
|
|
Term
| internal operations (cycle time is a measure of process efficiency) |
|
Definition
| Measures of cycle time would most likely appear in which part of the balanced scorecard? |
|
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Term
|
Definition
| provide information concerning the source of changes to the general ledger accounts |
|
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Term
|
Definition
| important part of the audit trail |
|
|
Term
|
Definition
| an adjusting journal entry to record interest revenue that has been earned but not yet received is an example of what? |
|
|
Term
|
Definition
| what is the new common business reporting computer language developed, in part, by the accounting profession called? |
|
|
Term
| starting the Y axis of the graph at zero (to accurately depict the magnitude of changes in the data) |
|
Definition
| what is the most important graph design principles for ensuring that financial data is accurately interpreted? |
|
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Term
|
Definition
| which activity is part of the sales order entry process? |
|
|
Term
| checking customer credit and inventory availability |
|
Definition
| two key parts of the sales order entry process |
|
|
Term
|
Definition
| which department sets credit limits |
|
|
Term
|
Definition
| preparing a bill of lading is part of what process |
|
|
Term
| someone outside the sales department |
|
Definition
| who should approve all returns? |
|
|
Term
|
Definition
| which document often accompanies merchandise shipped to a customer? |
|
|
Term
|
Definition
| this document specifies what is being shipped |
|
|
Term
|
Definition
| used by warehouse workers to fill the order |
|
|
Term
|
Definition
| used to adjust a customer's account balance for sales returns, allowance, or write offs |
|
|
Term
|
Definition
| which method is most likely used when a company offers customers discounts for prompt payment? |
|
|
Term
|
Definition
| This method provides a means to offer discounts b/c it facilitates aging each invoice to verify whether a discount should be gratned |
|
|
Term
|
Definition
| this method does not facilitate tracking the age of individual invoices and thus is difficult to use to offer discounts for early payment of individual invoices |
|
|
Term
|
Definition
| a method of smoothing the timing of cash receipts by billing different subsets of the customer file each week |
|
|
Term
|
Definition
| which technique is the most efficient way to process customer payments and update accounts receivable? |
|
|
Term
|
Definition
| integrates EFT, for processing customer payments, with EDI, for processing related remittance data to update accounts receivable |
|
|
Term
|
Definition
| deals with the transfer of funds; does not include remittance information necessary to update A/R |
|
|
Term
|
Definition
|
|
Term
| ACH, automated clearing house |
|
Definition
| the private communications network used by financial institutions to transfer funds |
|
|
Term
|
Definition
| which revenue cycle activity can potentially be eliminated by technology? |
|
|
Term
| through he use of integrated AIS (or ERP's) to make printing invoices superfluous, since both the seller and customer already know all the information included in the invoice |
|
Definition
| how can technology potentially eliminate billing? |
|
|
Term
| accounts receivable aging schedule |
|
Definition
| which report would be most useful for estimating likely bad debts? |
|
|
Term
| to identify accounts that are way overdue and therefore, may not be collected |
|
Definition
| one of the primary purposes of aging accounts receivable |
|
|
Term
|
Definition
| helps identify how product lines and business units are performing |
|
|
Term
|
Definition
| which document is used to authorize the release of merchandise from the inventory control (warehouse) to shipping? |
|
|
Term
|
Definition
| generated by sales order entry to authorize removal of inventory to be shipped to the customer |
|
|
Term
|
Definition
| accompanies the shipment and lists the contents of the shipment |
|
|
Term
|
Definition
| an internal document used to record what was shipped when the shipping function is performed in house; a bill of lading serves the same purpose when using a third party common carrier to deliver merchandise |
|
|
Term
|
Definition
| documents the terms of the sale and requests payment |
|
|
Term
|
Definition
| provides a means to both improve the efficiency of processing customer payments and also enhance control over those payments |
|
|
Term
| VMI; vendor managed inventory |
|
Definition
| process used to improve inventory management |
|
|
Term
|
Definition
| elimnates the delays involved in processing customer payments and then depositing them; also improves control b/c customer payments are not directly handled by any employees |
|
|
Term
|
Definition
| edi over the internet, used to exchange documents |
|
|
Term
|
Definition
| for good internal control, who should approve credit memos? |
|
|
Term
|
Definition
| For good internal control over customer remittances, the mailroom clerk should separate the checks from the remittance advices and send the customer payments to which department? |
|
|
Term
| MRP (demand for lumber can be forecast rather accurately) |
|
Definition
| which inventory control method is most likely to be used for a product like lumber? |
|
|
Term
|
Definition
| forecasts sales and uses that information to purchase inventory to meet anticipated needs |
|
|
Term
|
Definition
| seeks to minimize inventory by only making purchases after sales; used primary for products for which it is hard to forecast demand |
|
|
Term
|
Definition
| represents the optimal amount of inventory to purchase to minimize the sum of ordering, carrying, and stockout costs |
|
|
Term
|
Definition
| a method for stratifying inventory according to importance and scheduling more frequent inventory counts for the more important items |
|
|
Term
| the purchase order with the receiving report |
|
Definition
| matches performed in ERS (evaluated receipt settlement) |
|
|
Term
|
Definition
| eliminates the vendor invoice |
|
|
Term
|
Definition
| does setting up petty cash as imprest fund violate segregation of duties? |
|
|
Term
| same person that has custody of the asset (cash) authorizes its disbursement and maintains records |
|
Definition
| how does setting up petty cash as imprest fund violate segregation of duties? |
|
|
Term
|
Definition
| determines how much to order |
|
|
Term
| purchase order, receiving report, and vendor invoice (if received) |
|
Definition
| included in voucher package |
|
|
Term
|
Definition
| used to record adjustments of accounts payable |
|
|
Term
|
Definition
| which document is used to establish a contract for the purchase of goods or services from a supplier? |
|
|
Term
|
Definition
|
|
Term
|
Definition
| is purchase requisition internal or external |
|
|
Term
|
Definition
| used to specify which accounts to debit when paying vendor invoices |
|
|
Term
|
Definition
| which method would provide the greatest efficiency improvements for the purchase of noninventory items such as miscellaneous office suppliers? |
|
|
Term
|
Definition
| bar coding's biggest payoffs |
|
|
Term
| approving vendor invoices |
|
Definition
| which expenditure cycle activity can be eliminated through the use of IT or reengineering |
|
|
Term
| cancel all supporting documents when the check is signed to ensure that the supporting documents cannot be resubmitted to pay the same invoice again |
|
Definition
| what is the best control procedure to prevent paying the same invoice twice? |
|
|
Term
| separate check preparation and check signing functions |
|
Definition
| good control procedure to ensure that payments are valid |
|
|
Term
| prepare checks only for invoices that have been matched to receiving reports and purchase orders |
|
Definition
| good control procedure to ensure that organizations pay only for goods ordered and received |
|
|
Term
| require two signatures on all checks above a certain limit |
|
Definition
| good control procedure to better control large outflows of cash |
|
|
Term
|
Definition
| for good internal control, who should sign checks? |
|
|
Term
|
Definition
| the cashier is responsible for managing cash and reports to the _________? |
|
|
Term
|
Definition
|
|
Term
|
Definition
| authorizes acquisition of goods |
|
|
Term
|
Definition
| in charge of accounting, the record keeping function |
|
|
Term
| requiring purchasing agents to disclose any financial investments in potential suppliers |
|
Definition
| designed to prevent the purchasing agent from receiving kickbacks |
|
|
Term
| maintaining a list of approved suppliers and requiring all purchases to be made from suppliers on that list |
|
Definition
| control to minimize the risk of purchasing inferior goods at inflated prices or violating regulations |
|
|
Term
| requiring approval of all purchase orders |
|
Definition
| control designed to ensure that only goods that are really needed are ordered and that they are ordered from approved vendors |
|
|
Term
| prenumbering and periodically accounting for all purchase orders |
|
Definition
| control procedure designed to ensure that all valid purchase orders are recorded |
|
|
Term
|
Definition
| what document is used to record adjustments to accounts payable based on the return of unacceptable inventory to the supplier? |
|
|
Term
|
Definition
| document that records quantities of goods received |
|
|
Term
|
Definition
| used in the revenue cycle to adjust a customer's account |
|
|
Term
|
Definition
| this document establishes a legal obligation to purchase goods |
|
|
Term
| information is output and data is input |
|
Definition
| data differ from information in which way |
|
|
Term
|
Definition
| facts and figures that once organized can become information |
|
|
Term
|
Definition
| organized and processed data that provide meaning |
|
|
Term
| relevant, reliable, complete, timely, understandable, verifiable, accessible |
|
Definition
| characteristics that make information useful |
|
|
Term
|
Definition
| a primary activity in the value chain |
|
|
Term
| purchasing, human resource management |
|
Definition
|
|
Term
|
Definition
| firm infrastructure support activity |
|
|
Term
| low cost (seeking to improve manufacturing efficiency is part of a low cost strategy) |
|
Definition
| top management continually emphasizes and supports investments designed to improve the efficiency of the manufacturing process. such a focus most likely reflects the pursuit of which type of business strategy? |
|
|
Term
|
Definition
| this strategy adds new features and services not provided by competitors |
|
|
Term
|
Definition
| this strategy focuses on serving most of the needs of a particular group of customers in a target market |
|
|
Term
|
Definition
| this strategy focuses on producing or providing a subset of the industry's products or services |
|
|
Term
| reducing uncertainty, providing feedback about the effectiveness of prior decisions, identifying situations requiring management action |
|
Definition
| means by which information improves decision making |
|
|
Term
|
Definition
| in the value chain concept, upgrading IT is considered what kind of activity? |
|
|
Term
| technology activities, including investing in IT, are considered a support activity |
|
Definition
|
|
Term
| structured decisions involving operational control |
|
Definition
| lower level management employees are most likely to make what kinds of decisions |
|
|
Term
|
Definition
| at what level are strategic planning decisions made |
|
|
Term
| decisions involving managerial control |
|
Definition
| mid level managers are typically involved in what kind of decisions |
|
|
Term
| transforming data into useful information |
|
Definition
| one of the primary functions of an AIS |
|
|
Term
|
Definition
| a firm, its suppliers, and its customers collectively form which of the following? |
|
|
Term
|
Definition
| comprised of primary and support activities within the firm |
|
|
Term
|
Definition
| integrates all aspects of an organization's activities into one system |
|
|
Term
|
Definition
| comprised of the human and capital resources within an organization that are responsible for collecting and processing transactions and preparing financial information |
|
|
Term
|
Definition
| a company that focuses its marketing efforts on a specific subset of the population (e.g. college students) is probably pursuing which type of strategic position |
|
|
Term
|
Definition
| strategy focuses on providing a subset of an industry's products or services |
|
|
Term
|
Definition
| this strategy focuses on serving a subset of customers based on geographic location or size |
|
|
Term
|
Definition
| What control would be best to ensure negative items cannot be sold on a sales order? |
|
|
Term
|
Definition
| recurring set of business activities and related information processing operations associated with providing goods and services to customers and collecting cash in payment for those sales |
|
|
Term
| to provide the right product in the right place at the right time for the right price |
|
Definition
| primary objective of revenue cycle |
|
|
Term
| sales order entry, shipping, billing, cash collection |
|
Definition
| the four basic business activities performed in the revenue cycle |
|
|
Term
| taking the customer's order, checking and approving customer credit, and checking inventory availability |
|
Definition
| sales order entry process 3 steps |
|
|
Term
|
Definition
| contains information about item numbers, quantities, prices and other items of the sale |
|
|
Term
|
Definition
| allow customers to customize products to meet their exact needs |
|
|
Term
|
Definition
| a way to improve sales order entry process ; links directly with customers |
|
|
Term
|
Definition
| the retailer provides the supplier with access to data from the retailer's point of sale system that tracks when inventory is sold; supplier automatically initiates replenishment when inventory falls to specified levels |
|
|
Term
| outsourcing the costs associated with inventory management; reduce likelihood of stock outs |
|
Definition
| benefits of VMI to retailers |
|
|
Term
| more accurate sales forecasts--> optimize production and delivery schedules; reduced likelihood of retailer stockouts increases total sales |
|
Definition
| benefits of VMI to manufacturers and distributors |
|
|
Term
|
Definition
| lists the items, and quantities of each item that the customer ordered |
|
|
Term
|
Definition
| authorizes the inventory control function to release merchandise to the shipping department |
|
|
Term
| filling customer orders and shipping the desired merchandise |
|
Definition
| the second basic activity in the revenue cycle |
|
|
Term
| picking and packing the order; shipping the order |
|
Definition
| steps of shipping process |
|
|
Term
|
Definition
| lists the quantity and description of each item included in the shipment |
|
|
Term
|
Definition
| legal contract the defines responsibility for the goods in transit |
|
|
Term
|
Definition
| identifies the carrier, source, destination, and any special shipping instructions, and indicates who must pay the carrier |
|
|
Term
copy 1 to customer with shipment;
copy 2 to shipping departmnet to track and confirm the transfer of goods to the carrier;
copy 3 to billing department to indicate that the goods have been shipped and that an invoice should be prepared and mailed;
copy 4 remains with carrier |
|
Definition
| how many copies of bill of lading; where do they go |
|
|
Term
| invoicing and updating accounts receivable |
|
Definition
| tasks in the billing activity of revenue cycle |
|
|
Term
|
Definition
| notifies customer of the amount to be paid and where to send payment |
|
|
Term
| uses the information on the sales invoice to debit customer accounts and subsequently credits those accounts when payments are received |
|
Definition
| two main tasks of the accounts receivable function |
|
|
Term
| open invoice and balance forward methods |
|
Definition
| two basic ways to maintain accounts receivable |
|
|
Term
|
Definition
| customers typically pay according to each invoice; two copies of invoice mailed to customer who is requested to return one copy with the payment |
|
|
Term
|
Definition
| the second copy of the invoice sent to the customer; it is returned with payment (turnaround document) |
|
|
Term
|
Definition
| customers typically pay according to the amount shown on a monthly statement, rather than by individual invoices |
|
|
Term
|
Definition
| lists all transactions, including both sales and payments, that occurred during the past month and informs customers of their current account balances |
|
|
Term
|
Definition
| lists all transactions, including both sales and payments, that occurred during the past month and informs customers of their current account balances |
|
|
Term
| it is conducive to offering discounts for prompt payment, as invoices are individually tracked and aged |
|
Definition
| one advantage of the open invoice method |
|
|
Term
|
Definition
| monthly statements are prepared for subsets of customers at different times |
|
|
Term
|
Definition
| authorizes the crediting of the customer's account to reflect either the return of items or allowances granted for damaged goods |
|
|
Term
| to accounts receivable to authorize an adjustment tot the customer's account balance; another copy to the customer |
|
Definition
| where are copies of the credit memo sent? |
|
|
Term
|
Definition
| who handles customer remittances and deposits them in the bank? |
|
|
Term
|
Definition
| a document identifying the names and amounts of all customer remittances, and send it to accounts receivable |
|
|
Term
|
Definition
| postal address to which customers send their remittances; way to safeguard customer remittances |
|
|
Term
| EFT electronic funds transfer |
|
Definition
| customers send their remittances electronically to the company's bank and thus eliminate the delay associated with the time the remittance is in the mail system |
|
|
Term
| financial electronic data interchange FEDI |
|
Definition
| integrating the exchange of funds (EFT)with the exchange of remittance data (EDI) |
|
|
Term
| to accurately and efficiently process customer orders, ensure that the company gets paid for all credit sales and that all sales are legitimate, and to minimize the loss of revenue arising from poor inventory management |
|
Definition
| primary objectives of the sales order entry process |
|
|
Term
| accruals, deferrals, reevaluations, estimates, corrections |
|
Definition
| Five categories of adjusting entries |
|
|
Term
|
Definition
| The primary control objective that suggests you audit from the financial statements back to the source documents |
|
|
Term
| invoice, remittance advice, receiving report, purchase order |
|
Definition
| 3 documents found in the fourth phase of the expenditure cycle |
|
|
Term
| materials resource planning |
|
Definition
| This inventory management system SEEKS TO REDUCE required inventory by scheduling production, rather than estimating needs |
|
|
Term
|
Definition
| The fourth phase step of the expenditure cycle |
|
|
Term
| responsibility accounting |
|
Definition
| Budgets and performance reports should be developed on the basis of this |
|
|
Term
| financial, internal, innovation, customer |
|
Definition
| Four dimensions of the balanced scorecard (another way to look at performance) |
|
|
Term
|
Definition
| From a legal standpoint, when does the obligation to pay a vendor arise? |
|
|
Term
|
Definition
| in the general ledger and reporting system, producing managerial reports is the generally the ____ activity |
|
|
Term
| pay for something not ordered |
|
Definition
| Threat associated with the third phase of the expenditure cycle (order, receive, approve/pay) |
|
|
Term
|
Definition
| eliminate need for manual reentry |
|
|
Term
| to produce information for our decision makers |
|
Definition
| Primary objective of a accounting information system |
|
|
Term
|
Definition
| What information is given before a decision must be made, then that information is ___? |
|
|
Term
|
Definition
| The give-get exchange where we get labor in return for payment is the ___ cycle |
|
|
Term
|
Definition
| Lower level management employees are likely to make ___ decisions? |
|
|
Term
|
Definition
| The third step of the Revenue cycle |
|
|
Term
|
Definition
| Which department 2nd part of the revenue cycle |
|
|
Term
| A R summary, cash receipts, remittance list |
|
Definition
| List 3 docs for the list step of revenue cycle |
|
|
Term
|
Definition
One way that information technology can be used to enhance the first phase of the revenue cycle
Electronic entry into the system, |
|
|
Term
|
Definition
| ___ is an instruction to your bank to transfer funds from your acct to another account |
|
|
Term
o Update general ledger
o Post adjusting entries
o Prepare financial statements
o Produce managerial reports |
|
Definition
| Four basic activities performed by the general ledger and reporting system |
|
|
Term
|
Definition
| provides information about financing and investing activities such as the issuance or retirement of debt and equity instruments and the purchase or sale of investment securities |
|
|
Term
| on a form called journal voucher |
|
Definition
| how are journal entries to update the general ledger documented |
|
|
Term
|
Definition
| Contains the information that would be found in the general journal in a manual AIS; by product of posting process |
|
|
Term
|
Definition
| report that lists the balances for all general ledger accounts |
|
|
Term
|
Definition
| reflect events that have occurred but for which cash has not yet been received or disbursed |
|
|
Term
|
Definition
| reflect the exchange of cash prior to performance of the related event |
|
|
Term
|
Definition
| reflect a portion of expenses that occur over a number of accounting periods |
|
|
Term
|
Definition
| reflect either differences between the actual and recorded value of an asset or a change in accounting principle |
|
|
Term
|
Definition
| counteract the effects of errors found in the general ledger |
|
|
Term
| responsibility accounting |
|
Definition
| reporting financial results on the basis of managerial responsibilities within an organization |
|
|
Term
| results of responsibility accounting |
|
Definition
| set of correlated reports that break down the organization’s overall performance by specific subunits |
|
|
Term
|
Definition
| depicts the path of a transaction through the accounting system; provides information needed to trace all changes made to the general ledger |
|
|
Term
|
Definition
| a report that provides a multidimensional perspective of organizational performance |
|
|
Term
|
Definition
| a system that collects, records, stores, and processes data to produce information for decision makers |
|
|
Term
| relevant, reliable, complete, timely, understandable, verifiable, accessible |
|
Definition
| Characteristics of useful information |
|
|
Term
o Inbound logistics
o Operations
o Outbound logistics
o Marketing and sales
o Service |
|
Definition
| 5 primary activities of value chain: |
|
|
Term
o Firm infrastructure
o Human resources
o Technology
o Purchasing |
|
Definition
| value chain Support activities: |
|
|
Term
o Revenue cycle
o Expenditure cycle
o Production cycle
o Human resources/payroll cycles
o Financing cycle |
|
Definition
| 5 major business or transaction cycles |
|
|
Term
|
Definition
| files used to store cumulative information |
|
|
Term
|
Definition
| contains summary level data for every asset, liability, equity, revenue, and expense account of the organization |
|
|
Term
|
Definition
| records all the detailed data for any general ledger account that has many individual subaccounts |
|
|
Term
| number of purchase orders processed |
|
Definition
| Major cost driver in the purchasing function |
|
|
Term
o EDI/EDINT
o Vendor managed inventory programs
o Reverse auctions: suppliers compete with one another to meet demand at the lowest price
o Pre award audit: used for large purchases that involve formal bids by suppliers
o Using RFID over LIFO/FIFO/wted avg to specifically identify inventories |
|
Definition
| •Ways to improve purchasing process: |
|
|
Term
| receipt and storage of ordered items |
|
Definition
| Second major business activity in the expenditure cycle: |
|
|
Term
| warehouse manager, who in turn reports to the VP of manufacturing |
|
Definition
| Who does the receiving department report to? |
|
|
Term
|
Definition
| primary document used in the receiving subsystem of the expenditure cycle |
|
|
Term
|
Definition
| Documents details about each deliver, including date received, shipper, supplier, and purchase order number |
|
|
Term
|
Definition
| Third main activity in the expenditure cycle: |
|
|
Term
| receiving unordered goods, theft of inventory, errors in counting goods received |
|
Definition
| threats in receiving and storing goods (expenditure cycle) |
|
|
Term
| failing to catch errors in vendor invoices, paying for goods not received, failing to take purchase discounts, paying same invoice twice, recording and posting errors in AP, misappropriating cash, checks or EFTs |
|
Definition
| threats in approving and paying vendors |
|
|
Term
| ordering goods from suppliers, receiving goods from suppliers, and approving vendor invoices for payment and paying for goods and services |
|
Definition
| Basic business activities performed in the expenditure cycle: |
|
|
Term
|
Definition
| how many copies of sales order? |
|
|
Term
| filed in credit department; to warehouse and then to shipping; to billing; to customer; (fifth filed in warehouse) |
|
Definition
| to where do the 4/5 copies of the sales order go? |
|
|
Term
|
Definition
| how many copies of Bill of Lading |
|
|
Term
| 1 filed in shipping; 2 to customer with goods and packing slip; 3 to billing; 4 to carrier |
|
Definition
| where do the 4 copies of the Bill of ladings go |
|
|
Term
| Four copies: customer, shipping (warehouse **5th), AR/billing, freight carrier |
|
Definition
| how many copies of bill of lading; where they go |
|
|
Term
One copy to accounts receivable to adjust the customer account
One copy to the customer |
|
Definition
| distribution of credit memo |
|
|
Term
| a credit memo to write off an account |
|
Definition
| when will a copy of the credit memo not be sent to the customer |
|
|
Term
Remittance List
Deposit Slip
Copy of Check & Stub
Remittance advice
Check & Stub |
|
Definition
| Documents in Cash Collections |
|
|
Term
|
Definition
| allows us to get certain goods at certain range of prices w/out further authroizations/approval for specific period of time |
|
|
Term
|
Definition
| don't enter redundant information; shift risk |
|
|
Term
| recording, authorizing, custody |
|
Definition
| segregation of duties (things to separate) |
|
|
Term
external: PO from customer
internal: sales order (copies, to billing, WH, customer, one to keep |
|
Definition
|
|
Term
|
Definition
| should we bill off of shipping documents or sales order document? |
|
|
Term
| off remittance list/advice |
|
Definition
| How should A/R record updates in the revenue cycle? |
|
|
Term
| customer, warehouse, billing, shipping |
|
Definition
|
|
Term
| EOQ (economic order quantity) |
|
Definition
|
|
Term
| materials requirements planning |
|
Definition
| increase accuracy of different forecasts to reduce inventory levels required (better forecasting of when we need inventory) |
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|
Term
vendor
A/P
receiving
requesting department
filed in purchasing |
|
Definition
| purchase order copies (5). where? |
|
|
Term
|
Definition
| is bill of lading internally or externally created? |
|
|
Term
customer as order acknowledgment
inventory/warehouse for prep picking list
billing for prep of invoice
filed |
|
Definition
|
|
Term
to customer for payment
to a/r to record sale
filed |
|
Definition
|
|
Term
to A/R for recording pmts on account
to cashier to document deposit |
|
Definition
| copies of remittance list |
|
|
Term
| document receipt of goods from finished goods storeroom; acknowledges responsibility for custody of the goods transferred |
|
Definition
| control procedure for thefot of goods b shipping dock workers, who claim that the inventory shortages reflect errors in the inventory records |
|
|
Term
|
Definition
| control procedure for posting the sales amount to the wrong customer account b/c a customer account number was incorrectly keyed into the system |
|
|
Term
| closed loop verification ; redundant data check |
|
Definition
| control procedure for posting the sales amount to the wrong customer account b/c a customer account number was incorrectly keyed into the system |
|
|
Term
| have credit manager approve all credit sales (segregation of duties); up to date credit records |
|
Definition
| control procedure for making a credit sale to a customer who is already four months behind in making payments on his account |
|
|
Term
| must match credit memo with confirmation of receipt of goods; a receiving report should be required to support the authorization of credits for sales returns |
|
Definition
| control procedure for authorizing a credit memo for a sales return when the goods were never actually returned |
|
|
Term
| separate recording from cash collections |
|
Definition
| control procedure for writing off a customer's accounts receivable balance as uncollectible to conceal the theft of subsequent collections |
|
|
Term
| bill customers off of shipping documents not sales order; bills prepared based upon the quantity shiped rather than the quantity ordered |
|
Definition
| control procedure for billing customers for th quantity ordered when the quantity shipped was actually less |
|
|
Term
| separation of duties; checks restricted for deposits into one account; prenumber checks; supervision of mailroom operations |
|
Definition
| control procedure for theft of checks by the mailroom clerk, who then endorsed the checks for deposit into the clerk's personal bank account |
|
|
Term
|
Definition
| control procedure for crediting customer payment to wrong account |
|
|
Term
| segregate shipping and billing functions |
|
Definition
| control procedure for giving goods away for free |
|
|
Term
| off site data stroage of backup files |
|
Definition
| control procedure for corrupted data files |
|
|
Term
|
Definition
| control procedure for theft of customer payments |
|
|
Term
|
Definition
| control procedure for inv shrinkage due to theft b employees |
|
|
Term
|
Definition
|
|
Term
| approval of purchase requisition; approved vendors; disclose fianical investment of purchasing agents |
|
Definition
| control procedure for purchasing agent ordering materials from a supplier that he partially owns |
|
|
Term
|
Definition
| control procedure for receiving dock personnel stealing inventory and then claiming the inventory was sent to the warehouse |
|
|
Term
| accept only ordered goods (match with purchase order); compare invoices with PO before payment |
|
Definition
| control procedure for unordered supply of laser printer paper delivered and is accepted and paid for |
|
|
Term
1 part of voucher package
2 remittance advice |
|
Definition
| copies of vendor invoice (external-exp cycle) |
|
|
Term
1 vendor
2 ap
3 receiving
4 requesting dpt
5 purchasing |
|
Definition
| copies of internal purchase order (expenditure cycle) |
|
|
Term
1 purchasing
2 requesting ptmt |
|
Definition
| copies of purchase requisition |
|
|
Term
1 to A/P
2 purchasing
3 filed in receiving |
|
Definition
| copies of receiving report |
|
|
Term
| file invoices by due date |
|
Definition
| control procedure for falling to take available purchase discounts |
|
|
Term
| accept only deliveries for which there is an approved purchase order |
|
Definition
| control procedure for receiving unordered goods |
|
|
Term
| compare total invoice amount processed to the difference in vendor account balances before and after check processing |
|
Definition
| control procedure for recording and posting errors in accounts payable |
|
|
Term
| compare quantities on invoice to quantities received into inventory |
|
Definition
| control procedure for paying for goods not receieved |
|
|
Term
| use external and internal data labels |
|
Definition
| control procedure foraccidental loss or delition of data |
|
|
Term
| design an AIS that integrates databases from various subunits |
|
Definition
| control procedure for requesting unnecessary items |
|
|
Term
| require receiving clerks to sign a receiving report |
|
Definition
| control procedure for making errors in counting |
|
|
Term
| document all transfers of inventory with the company |
|
Definition
| control procedure for stealing inv |
|
|
Term
| hold purchasing managers responsible for the costs of scrap and rework |
|
Definition
| control procedure for purchasing goods of inferior quality |
|
|
Term
| install a perpetual inventory system that uses bar code technlogoy |
|
Definition
| control procedure for preventing stocksouts/excess inv |
|
|
Term
| invoices should be paid only when accompanied by a purchase order and receiving report and should cancel all supporting documents when checks are wissue |
|
Definition
| control procedure for paying the same invocie twice |
|
|
Term
| employ proper segregation of duties |
|
Definition
| control procedure for misappropriating cash, checks, efts |
|
|
Term
| periodically review lists of approved vendors for unapproved changes |
|
Definition
| control procedure for purchasing goods from unauthorized suppliers |
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