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

Briefly describe how the complexity of an entity''s ics, Auditors use vario...

Auditors use various tools to document their understanding of an entity's internal control system, including narrative descriptions, internal control questionnaires, and flowcharts

ACL PROGRAME, I have some questions in ACL PROGRAME . IF YOU CAN HELP ME

I have some questions in ACL PROGRAME . IF YOU CAN HELP ME

Framework of critical thinking principles, Framework of critical thinking p...

Framework of critical thinking principles (a) Identify the key steps in this framework/ concept. (b) Briefly explain each of the key steps, in your own words. Ans: Thin

Questionable and fraudulent accounting, Assessment tasks: This assign...

Assessment tasks: This assignment requires you to revisit the case of the collapse of US energy giant Enron Ltd. Your revisit starts with a reading of the excerpts from memos

Auditor''s duties - audit of current assets, Auditor's Duties - Audit of Cu...

Auditor's Duties - Audit of Current Assets The auditor's duties can be summarized as follows: a) The accounting ascertaining policies adopted through the entity for pri

Meaning of true in auditing, Meaning of True in Auditing Meaning of 't...

Meaning of True in Auditing Meaning of 'true and fair'/present fairly' Truth in accounting is quite different form scientific truth.  Accounting does without a deal along w

Audit process - disclosure and presentation , Disclosure and Presentation -...

Disclosure and Presentation - Audit Process IAS 16 provides exclusive disclosure requirements. Fixed assets should be split into appropriate classes and the following shoul

Profesional ethic, Ask quesThe following situations involve a possible viol...

Ask quesThe following situations involve a possible violation of the MIA ByLaws (on professional ethics, conduct and practice). For each situation, (1) decide whether or not the Co

Auditor-client relationship, describe possible factors in the auditor-clien...

describe possible factors in the auditor-client relationship that can make it more difficult for the auditor to detect fruad

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