Receiving, Storage, Issuing, Inventory

The ordering process begins with the decision of the customer to submit their order simply by either calling, faxing or mailing their order information. When a customer calls in their order, the customer service representatives takes down pertinent customer information, which includes the customer's name, billing and shipping address, product number and description, quantity and shipping instructions. While taking down the order, the customer service representative access the company's order entry system where inventory checks are conducted as well as credit checks are processed. In addition, delivery options are advised to the customer. Here the customer decides

Classification: Posting of sales transaction to proper account: tested when accuracy tested; focus on unusual items

This control is directly related to the accuracy transaction-related audit objective for sales. The auditor might test the effectiveness of this control by examining a sample of duplicate sales invoices for the clerk’s initials indicating that the unit selling price was verified.

Sales invoices are prepared in batches on a daily basis using numbered sales invoices. Sales invoice numbers are automatically generated by the company’s computer system. The accounts receivable clerk does not have appropriate computer rights to override the computer-generated invoice number. Upon preparing sales invoices, the accounts receivable clerk verifies that the first invoice number of the batch is consistent with the last invoice number of the previous batch. Inconsistencies or skipped sales invoice numbers are investigated and resolved before new sales invoices are prepared. The items shipped are compared to the items billed for proper quantity, price, and other sales order terms.

to provide for as wide a range of individual needs as possible and to raise

Continuing with a food retailer, Greggs or a restaurant will want to get fresher ingredients than other retailers so that they can make sure they produce all of their products to be as fresh as can be. This can be done for example by Gregg’s own in-store bakeries having their ingredients delivered in the morning and then they bake them the same morning to make sure they are as fresh as possible. When they order the ingredients from the producers they will have to check that the supplier is storing the produce correctly before purchasing, otherwise they may purchase products that could be unsuitable for them to use and if they did use them, could create problems for them in the future. A good example of this could be

* The delivered item or items have value to the customer on a standalone basis, which is satisfied in this case.

All goods purchased pass through a receiving department under the direction of the chief purchasing agent. The duties of the receiving department are to unpack, count, and inspect the goods. The quantity received is compared with the quantity shown on the receiving department’s copy of the purchase order. If there is no discrepancy, the purchase order is stamped “OK—Receiving Dept.” and forwarded to the accounts payable section of the accounting

Another business requirement is the timely delivery of quality modules and equipment by the suppliers. The main task of the project team is to install the modules and equipment on the trains. It is therefore essential that the products are procured in good time. It is the task of ECO-Trans to ensure that quality equipment is delivered in time for the completion of the project. The delivered components should be inspected for quality at the time of delivery to ensure they match the client’s quality needs and recommendations (Burke, 2013). Any defective components should be noted and returned to the supplier. This would help

Another component can be found in the requirement to convince the supermarkets to give up valuable freezer space to dog food. Freezer space is a high value commodity; giving up such space to a product that has a potentially small market in lieu of using the space for products for the wider

4. To continue incurring only minimal amounts of expenses relating to marketing and other advertising expenses.

5. Offering fresh and prepared food. Prepared food and fresh offerings have become increasingly demanded within the marketplace, and providing them can be highly profitable for firms, considering that sales for these products are growing at three times that of center store categories. Furthermore, the perishables department and prepared foods offer significantly higher profit margins than standard center-aisle offerings and also lead to improved consumer perception of the store in general.

c. Trace the check number and amount of outstanding items – Occurrence, Completeness, & Accuracy (AU-C 315.A114 a.i-iii)

For a purchasing operation to be effective it must adhere to some key points. A purchasing operation must identify the requirements of the user, effectively and efficiently evaluate the needs of the user, and identify suppliers that will meet the needs of the use. They must also develop agreements with those suppliers, develop ordering mechanism with the suppliers and ensure payment occurs promptly and determine that the need of the user was met.

Records of all the required sampling, inspection and testing procedures to demonstrate that all the products, formally assessed against the outlined specifications.