Introduction To Managerial Accounting
8th Edition
ISBN: 9781259917066
Author: BREWER, Peter C., Garrison, Ray H., Noreen, Eric W.
Publisher: Mcgraw-hill Education,
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Question
Chapter P, Problem 17Q
To determine
Purchase is an important activity in most of the businesses. The key documents involved in this activity are purchase order issued to the supplier, receiving report prepared at the time of receiving the supplies and the invoice received from the supplier. These documents are basis for audit or internal control of the payments to be made to the supplier.
To Identify: As a form on internal control, documents to be reviewed prior to paying an invoice from a supplier.
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Students have asked these similar questions
As a form of internal control, what documents would you review prior to paying an invoice received from a supplier?
In a good internal control system, which of the following sets of documents is required for proper approval of a payment to a supplier?
A.
a journal entry, a supplier invoice, and a description of the goods being purchased
B.
a supplier invoice, a bill of lading, and the supplier's financial statements
C.
a purchase order, a journal entry, and a price catalog
D.
a receiving report, an invoice, and a purchase order
Can you explain how the internal control of Documentation Procedure is violated in this question?
after payment, bills are filed in a "paid invoice" folder.
Chapter P Solutions
Introduction To Managerial Accounting
Ch. P - How does managerial accounting differ from...Ch. P - Pick any major television network describe some...Ch. P - It you had to decide whether to continue making a...Ch. P - Why do companies prepare budgets?Ch. P - Prob. 5QCh. P - Prob. 6QCh. P - Prob. 7QCh. P - Why do management accountants need to understand...Ch. P - Prob. 9QCh. P - Pick three industries and describe the risks faced...
Ch. P - Pick any large company and explain there ways that...Ch. P - Locate the website of any company that publishes a...Ch. P - Why do companies that implement Lean Production...Ch. P - Why are leadership skills important to managers?Ch. P - Prob. 15QCh. P - If you were a restaurant owner, what internal...Ch. P - Prob. 17QCh. P - Prob. 18QCh. P - Why do companies take a physical count of their...Ch. P - Why do companies use sequential prenumbering for...Ch. P - Planning and Control Many companies use budgets...Ch. P - Controlling Assume that you work for an airline...Ch. P - Prob. 3ECh. P - Ethics and the Manager Richmond. Inc., operates a...Ch. P - Prob. 5ECh. P - Prob. 6ECh. P - Ethics in Business Consumers and attorney generals...Ch. P - Prob. 8ECh. P - Prob. 9ECh. P - Prob. 10ECh. P - Prob. 11ECh. P - Cognitive Bias and Decision Making During World...Ch. P - Ethics and Decision Making Assume that you just...
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Similar questions
- Explain, on what criteria or by what internal controls in place, where Billing could be responsible for issuing invoices, sales journal, AR update (for both billing and payment received).arrow_forwardWhat are the primary stages and controls in the accounts payable transaction cycle, from receiving vendor invoices to verifying, recording, and making payments to vendors?arrow_forwardThe auditor is verifying whether all goods received by the company have been recorded appropriately. The source document that the auditor would test would most likely be the Supplier invoices Purchase orders Receiving reports Check vouchersarrow_forward
- What type of internal control is matching supporting documents before paying an invoice?arrow_forwardthe auditor is verifying whether all goods received by the company have been recorded appropriately. The source document that the auditor would test would most likely be the a. Supplier invoicesb. Purchase ordersc. Receiving reportsd. Check vouchersarrow_forwardIf you were in charge of authorization payment in an organisation,what information would you require before you could authorize payment?arrow_forward
- Where would an auditor find the proper authorization that indicates it is okay to pay a vendor?arrow_forwardDescribe how the auditor documents the sales and despatch system for his audit filearrow_forwardThe auditor verifying whether all goods received by the company have been recorded appropriately. The source document that the auditor would test would mostly likely be the? A. Supplier Invoice B. Purchase Orders C. Receiving Reports D. Check Vouchersarrow_forward
- State the purpose of footing the total column in the client’saccounts receivable trial balance, tracing individual customer names and amounts to theaccounts receivable master file, and tracing the total to the general ledger. Is it necessaryto trace each amount to the master file? Whyarrow_forwardAllowing only certain employees to order goods and services for the company is an example of what internal control procedure? a.Proper authorization b.Independent verification c.Segregation of duties d.Safeguarding of assets and recordsarrow_forwardAnswer the following questions. a. Which department is responsible for initiating the purchase of materials? b. What is the name of the document generated by the department identified in (a) above? c. Typically, multiple copies of a purchase order are prepared. One copy should go to the vendor, and one is retained in the purchasing department. To achieve proper control, which other departments should receive copies of the purchase order? d. What documents does the accounts payable clerk review before setting up a liability? e. Which document transfers responsibility for goods sold to a common carrier?arrow_forward
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