MANAGERIAL ACCOUNTING F/MGRS.
6th Edition
ISBN: 9781264100590
Author: Noreen
Publisher: RENT MCG
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Question
Chapter P, Problem P.16Q
To determine
Concept introduction:
Internal Control: Internal control is a set of controls that ensure the smooth and effective management of the business transactions to achieve the business goals. Internal control works as a monitoring system for all the departments of an organization.
To indicate: The documents to be reviewed before paying an invoice received from a supplier.
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Check out a sample textbook solutionStudents 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
MANAGERIAL ACCOUNTING F/MGRS.
Ch. P - Prob. P.1QCh. P - Pick any major television network and describe...Ch. P - If you had to decide whether to continue making a...Ch. P - Why do companies prepare budgets?Ch. P - Prob. P.5QCh. P - Why is managerial accounting relevant to...Ch. P - Prob. P.7QCh. P - Why do management accountants need to understand...Ch. P - Prob. P.9QCh. P - Pick three industries and describe how the risks...
Ch. P - Pick any large company and explain three ways that...Ch. P - Why do companies that implement Lean Production...Ch. P - Why are leadership skills important to managers?Ch. P - Why are leadership skills important to managers?Ch. P - Prob. P.15QCh. P - Prob. P.16QCh. P - Prob. P.17QCh. 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 - Prob. P.1ECh. P - Prob. P.2ECh. P - Ethics and the Manager Richmond, Inc., operates a...Ch. P - Prob. P.4ECh. P - Prob. P.6ECh. P - Ethics In Business Consumers and attorney generals...Ch. P - Prob. P.8ECh. P - Prob. P.9ECh. P - Corporate Social Responsibility In his book...Ch. P - Prob. P.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_forwardWhat type of internal control is matching supporting documents before paying an invoice?arrow_forward
- The 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_forwardIf you were in charge of authorization payment in an organisation,what information would you require before you could authorize payment?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_forward
- Where would an auditor find the proper authorization that indicates it is okay to pay a vendor?arrow_forwardWhat types of controls are in place to protect data (such as company information or customer personal information)?arrow_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_forward
- Describe how the auditor documents the sales and despatch system for his audit filearrow_forwardState 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_forwardWhat tools do auditors use to verify the ending balances in the various accounts in the acquisition and payments cycle? Please provide reference(s).arrow_forward
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