Jounta Enterprises Swot Analysis Essay

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One of the greatest strengths of the internal control procedures of Jounta Enterprises is that the company follows the principles of approval and segregation of duties; no single person has complete control over all buying activities. The manager of the purchasing department has to approve the requisition purchase and Purchase order before it is mailed; therefore there is a clear indication of who wanted the item and who said that it could be purchased. The requirement for the approval of a purchase requisition provides the company with a control to reduce the risk of fraud and prevent unnecessary purchases being made. This method protects the company from any rogue orders and ensures that supplies and expenses are carefully controlled.

Another important strength of Jounta Enterprise is the effective communication. Every purchase order has multiple copy form, so that the purchase may be efficiently communicated to all relevant departments within the company. Typically, copies of the purchase order are distributed to purchasing files, receiving personnel who must check the shipment against the purchase order.

The Three-way matching procedure used by the accounts payable is other internal strength. When this company process an invoice received from a supplier, it matches the following information: purchase order, receiving report, and
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Jounta Enterprises will get a lot of benefits by installing a newer IT system to process purchases, good received, accounts payable and checks. A new system allows easy management of purchase requisition and purchases order record. An efficient record of purchase history allows for repeat orders, saving your purchasing department time. Also, it is possible to perform automated reconciliation with the purchase order, the receiving report, and the supplier invoice. Overall this system helps to reduce the risk of erroneous invoicing, save time and
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