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Lakeside 12e Case 6

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Case 6 - Exercise 2
Lakeside Company
Inventory Purchases and Cash Disbursements Transactions
December 31, 2006
Audit document No. N-3
Prepared by: AM 5/23/05
Reviewed by:
Reviewed by:

Date

Vendor Purchase Requisition Number Receiving Report Number
Invoice Number
Check Number
Audit
Procedures
8/20/06 Cypress Products 6702 3918 711 3091        
8/21/06 Cypress Products 6703 3919 802 3121    F    
8/24/06 Cypress Products 6705 3920 991 3164    F    
8/27/06 Cypress Products 6704 3921 1261 3203   E    H L
8/28/06 Cypress Products 6706 3922 1313 3251   D     
9/2/06 Cypress Products 6707 3923 1406 3310      G  
9/3/06 Cypress Products 6708 3924 1510 3345     …show more content…

D. Part number of Televisions listed on Vendor Invoice does not match Purchase Requisition and Receiving Report. Is only off by one letter and the price matches that of the item ordered and received in the Master Price list. Verified with Thomas that this is a typo on the Vendor’s part. No notation of discrepancy was made upon client’s review of Vendor Invoice.
E. Enquired with Thomas regarding procedures when merchandise is back-ordered so that same merchandise is not re-ordered upon notice that it is low. An additional copy of the Purchase Requisition is made at time of comparison with Receiving Report, highlighting line with item and note about backordered items. This is kept with other open Purchase Requisitions in Treasurer’s Department. Change system flowchart.
F. Some Purchase Requisitions were made out by Thomas’ assistant Wisdon and some were approved by Rogers’ assistant Miller. Thomas and Rogers both verified that these signatures are authorized. Change system flowchart.
G. Vendor invoice #1406 was not priced, footed, and extended. Did so now to confirm. Client paid invoice with check without evidence that this step had been done.
H. Price of part KJ32-K on Vendor Invoice does not match Master Price list. Instructed Thomas to update Master Price list.
I. Price of part BV24-R on Vendor Invoice does not match Master Price list. Instructed Thomas to update Master Price list.
J. Price of part PO88-Q on Vendor Invoice does

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