Inter-related components of internal control, Auditing

Assignment Help:

Part A:

What are the five inter-related components of internal control? Briefly discuss them.

Part B:

A file maintained by the Accounts Department for one of Sharp's suppliers includes:

a. Copy of purchase requisition.
b. Goods received note.
c. Delivery note.
d. Purchase invoice.
e. Copy of remittance advice.
f. Supplier's statement.

Required:-

Describe the following:

(i) Why is it important that a department other than the Purchasing Department should raise a purchase requisition?

(ii) Even with a separate Purchasing Department (i.e. separate from the department that raises the purchase requisition), there is still a risk of fraud by staff in the Purchasing Department. In what way could a fraud take place, and how could controls be instituted to minimize the risk of such a fraud?

(iii) Why is each purchase invoice not sent with the goods to the Goods Received Department?

(iv) Why should the Goods Received Department not accept goods where there is no purchase order?


Related Discussions:- Inter-related components of internal control

Recording the audit - isa 230, Recording the Audit - ISA 230 Purpose...

Recording the Audit - ISA 230 Purpose of working papers It is necessary which all audit work is documented - the working papers are the tangible evidence of the work co

Going concern considerations - audit process, Going Concern Considerations ...

Going Concern Considerations - Audit Process IAS 1 Presentation of Financial Statements knows the going related assumption as one of the fundamental assumptions that underlie

Audit sampling, write short note on the following; audit sampling populati...

write short note on the following; audit sampling population sample size sample unit stratification extrapulation

Brand names - audit process, Brand Names - Audit Process Few companies...

Brand Names - Audit Process Few companies in current years have placed valuations on the brand names of the goods such they sell.  On the balance sheet the valuation is shown.

Audit report, You are auditing XYZ company for the year ended 12/31/2012 an...

You are auditing XYZ company for the year ended 12/31/2012 and will be expressing an opinion on their financial statements as of that date. You completed your field work on 1/21/13

Annotated bibliography, Conducting a critical review of published literatur...

Conducting a critical review of published literature about a topic is fundamental step in developing your research skills. A first step towards a review of the literature is to sea

Auditing and assurance in australia, i need an assignment for auditing with...

i need an assignment for auditing with word count of 1750

Acounting information systems, discuss the 4 stages of data processing in a...

discuss the 4 stages of data processing in an accounting information system

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd