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THE EXPENDITURE CYCLE: PURCHASING AND CASH DISBURSEMENTS

THE EXPENDITURE CYCLE: PURCHASING AND CASH DISBURSEMENTS. Chapter 11. 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?).

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THE EXPENDITURE CYCLE: PURCHASING AND CASH DISBURSEMENTS

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  1. THE EXPENDITURE CYCLE:PURCHASING AND CASH DISBURSEMENTS Chapter 11

  2. 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, PO’s, • Prenumber documents -- PO’s, 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)

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