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

Control over fixed assets.., internal control procedures to be put in place...

internal control procedures to be put in place when purchasing a motor vehicle

Audit /internl control.., Ask You are the senior auditor assigned to the te...

Ask You are the senior auditor assigned to the team performing an audit for Restorative Pharmaceutical Corporation (RPC), a 10-year-old publicly held corporation listed on the New

Permanent audit file, Permanent Audit File The permanent audit file mi...

Permanent Audit File The permanent audit file might involve, inter alia: a) A copy of the enterprise's statutes or statutory documents and other legal governing the enterpr

Statutory audit of bank, what are the things we need to check in statutory ...

what are the things we need to check in statutory audit of bank?

Factors affecting and controlling occupational health, Factors Affecting an...

Factors Affecting and Controlling Occupational Health (i) Walking-Working Surface Workers must work or move on different surfaces while working. Such - surfaces are cha

audit tests and recording items in the audit, With reference to the case s...

With reference to the case study business, identify appropriate audit tests to be carried out. Prepare a statement of the work to be carried out and the manner in which it will be

Financial instruments - ias 32 and ias 39, Financial Instruments - IAS 32 a...

Financial Instruments - IAS 32 and IAS 39 IAS 39 and IAS 32 are examinable to the extent such they deal along with the presentation and measurement of equity, debt or else con

Assertions about classes, Assertions about classes Assertions about ...

Assertions about classes Assertions about classes of transactions and events for the period under audit : a) Occurrence -events and transactions which have been recorde

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