We think you have liked this presentation. If you wish to download it, please recommend it to your friends in any social system. Share buttons are a little bit lower. Thank you!
Presentation is loading. Please wait.
Published byAri Lecates
Modified about 1 year ago
Copyright © 2015 Pearson Education, Inc. The Expenditure Cycle: Purchasing to Cash Disbursements Chapter 13 13-1
Copyright © 2015 Pearson Education, Inc. Learning Objectives Explain the basic business activities and related information processing operations performed in the expenditure cycle. Discuss the key decisions to be made in the expenditure cycle, and identify the information needed to make those decisions. Identify major threats in the expenditure cycle, and evaluate the adequacy of various control procedures for dealing with those threats. 13-2
Copyright © 2015 Pearson Education, Inc. Basic Expenditure Cycle Activities Order materials, supplies, and services Receive materials, supplies, and services Approve supplier (vendor) invoice Cash disbursement 13-3
Copyright © 2015 Pearson Education, Inc. Order Goods (Materials/Supplies) or Services Processing Steps Identify what, when, and how much to purchase ▫Source document: purchase requisition Choose a supplier ▫Source document: purchase order 13-4
Copyright © 2015 Pearson Education, Inc. Ordering Goods/Services ThreatsControls 1.Stockouts and excess inventory 2.Purchasing items not needed 3.Purchasing items at inflated prices 4.Purchasing goods of poor quality 5.Unreliable suppliers 6.Purchasing from unauthorized suppliers 7.Kickbacks 1 a. Perpetual inventory system b. Bar-coding, RFID 2 a. Review and approval of purchase requisitions 3 a. Price lists b. Competitive bids 4 a. Use approved suppliers 5 a. Monitor supplier performance b. Require quality certification 6 a. Purchase from approved suppliers 7 a. Supplier audits b. Prohibit gifts 13-5
Copyright © 2015 Pearson Education, Inc. Receiving Process Goods arrive ▫Verify goods ordered against the purchase order (what, how much, quality) ▫Source document: receiving report 13-6
Copyright © 2015 Pearson Education, Inc. Receiving Goods or Services ThreatsControls 1.Accepting unordered items 2.Mistakes in counting 3.Verifying receipt of services 4.Inventory theft 1 a. Authorized purchase orders needed before receiving goods 2 a. Bar codes or RFID 3 a. Budget controls and audits 4 a. Restrict physical access to inventory b. Document all inventory transfers c. Segregate custody vs. receiving of inventory 13-7
Copyright © 2015 Pearson Education, Inc. Approve Supplier Invoice and Cash Disbursements Match the supplier invoice to: ▫Purchase order ▫Receiving report supplier invoice + purchase order + receiving report = voucher Approve supplier invoice for payment ▫Source document: disbursement voucher Pay vendor 13-8
Copyright © 2015 Pearson Education, Inc. Approve Supplier Invoice ThreatsControl 1.Errors in supplier invoice 2.Mistakes in posting to accounts payable 1 a. Verify invoice accuracy 2 a. Data entry edit controls b. Reconcile detailed accounts payable records to the general ledger accounts payable account 13-9
Copyright © 2015 Pearson Education, Inc. Cash Disbursements ThreatsControls 1.Failure to take discounts 2.Pay for items not received 3.Duplicate payments 4.Theft of cash 5.Check alteration 6.Cash flow problems 1 a. File invoices by due date to take advantage of discounts 2 a. Match supplier invoice to supporting documents (purchase order, receiving report) 3 a. Pay only original invoices b. Cancel supporting document when payment is made 4 a. Physical security of checks b. Separation of duties c. Reconcile bank accounts 5 a. Check Protection machines 6 a. Cash flow budget 13-10
Copyright © 2015 Pearson Education, Inc. Key Terms Expenditure cycle Economic order quantity (EOQ) Reorder point Materials requirement planning (MRP) Just-in-time (JIT) inventory system Purchase requisition Purchase order Blanket purchase order Vendor-managed inventory Kickbacks Receiving report Debit memo Voucher package Nonvoucher system Voucher system Disbursement voucher Evaluated receipt settlement (ERS) Procurement card Imprest fund 13-11
Chapter 13 The Expenditure Cycle: Purchasing to Cash Disbursements Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 13-1.
Chapter 13 The Expenditure Cycle: Purchasing to Cash Disbursements Copyright © 2012 Pearson Education 13-1.
Copyright © 2015 Pearson Education, Inc. The Expenditure Cycle: Purchasing to Cash Disbursements Chapter
Copyright © 2015 Pearson Education, Inc. The Revenue Cycle: Sales to Cash Collections Chapter
Acct 316 Acct 316 Acct 316 The Expenditure Cycle: Purchasing and Cash Disbursements 12 UAA – ACCT 316 – Fall 2002 Accounting Information Systems Dr. Fred.
12-1 Anup Kumar Saha The Expenditure Cycle: Purchasing and Cash Disbursements.
©2003 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, Romney/Steinbart 12-1 Accounting Information Systems 9 th Edition Marshall.
Chapter 12 The Revenue Cycle: Sales to Cash Collections Copyright © 2012 Pearson Education 12-1.
Chapter 12 The Revenue Cycle: Sales to Cash Collections Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 12-1.
12-1 Kitaran Perbelanjaan: Pembelian dan Pengeluaran Tunai.
Chapter 4-1 The Islamic University of Gaza Accounting Information System The Expenditure Cycle : Purchases and Cash Disbursements Procedures Dr. Hisham.
Revenue, Expenditure Cycles. Lecture 12-2 ©2003 Prentice Hall Business Publishing, Accounting Information Systems, 9/e, Romney/Steinbart Basic Subsystems.
Chapter 5 Expenditure Cycle Applications. Expenditure Documents i.Purchase Requisitions ii.Purchase Orders iii.Receiving Report iv.Voucher Systems v.Invoice.
© 2003 McGraw-Hill Australia Pty Ltd, PPTs t/a Accounting Information & Reporting Systems by A. Aseervatham and D. Anandarajah. Slides prepared by Kaye.
AUDITING CHAPTER 12 Purchases & Cash Disbursements Transactions By David N. Ricchiute.
HAPTER 11 The Expenditure Cycle: Purchasing and Cash Disbursements.
© 2008 Prentice Hall Business Publishing Accounting Information Systems, 11/e Romney/Steinbart C The Expenditure Cycle: Purchasing to Cash Disbursements.
Chapter 8 Procurement and Human Resource Business Processes.
ACCOUNTING INFORMATION SYSTEMS BASIC CONCEPTS & CURRENT ISSUES Chapter 9 Acquisition / payment process McGraw-Hill/Irwin Accounting Information Systems.
EXPENDITURE CYCLE Chapter 13 Acquire Goods and Services Pay for Goods and Services Spring 2002.
Audit of the Acquisition and Payment Cycle. Identify the accounts and the classes of transactions in the acquisition and payment cycle. Describe the business.
Auditing: The Art and Science of Assurance Engagements Chapter 16: Audit of Cash Balances Copyright © 2011 Pearson Canada Inc.
BA 427 – Assurance and Attestation Services Lecture 5 Internal Controls: Purchases, Inventory and Payroll.
Chapter 5 The Expenditure Cycle Part 1: Purchases and Cash Disbursements Procedures Accounting Information Systems, 5 th edition James A. Hall COPYRIGHT.
© 2006 Prentice Hall Business Publishing Accounting Information Systems, 10/e Romney/Steinbart1 of 40 C HAPTER 11 The Expenditure Cycle: Purchasing and.
Copyright © 2015 Pearson Education, Inc. The Production Cycle Chapter
Internal Control 7. Management Issues Related to Internal Control OBJECTIVE 1: Identify the management issues related to internal control.
The Expense Cycle: Purchasing to Cash Payments Chapter 11 1FOSTER School of Business Acctg.320.
Copyright © 2015 Pearson Education, Inc. The Human Resources Management and Payroll Cycle Chapter
0 Glencoe Accounting Unit 4 Chapter 15 Copyright © by The McGraw-Hill Companies, Inc. All rights reserved. Chapter 15 Accounting for Purchases and Cash.
Copyright © 2007 Pearson Education Canada 1 Chapter 15: Audit of Cash Balances.
Hall, Accounting Information Systems, 7e ©2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly.
Chapter 10: Auditing the Expenditure Cycle IT Auditing & Assurance, 2e, Hall & Singleton.
Chapter 6 Audit of Cash Accounting 4081Chapter 6.
P-1: Enter cash receipts close to originating source Ensure effectiveness of operations: As reflected by the entries in goal columns A and B under process.
Accounting Information Systems, 6 th edition James A. Hall COPYRIGHT © 2009 South-Western, a division of Cengage Learning. Cengage Learning and South-Western.
Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin.
Chapter 10 THE ACQUISITION CYCLE— PURCHASE INVOICES AND PAYMENTS.
0 Glencoe Accounting Unit 4 Chapter 15 Copyright © by The McGraw-Hill Companies, Inc. All rights reserved. The Purchasing Process Retail businesses need.
Accounting (Information Systems) 204 Lecture 12 Semester Wang Yuanhua 汪元华 School of Accounting, JXUFE.
Chapter 12 Acquisition/Payment Process Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin.
1 Chapter 1 Introduction to Accounting Information Systems Chapter 12 The Purchasing/ Accounts Payable/ Cash Disbursement (P/AP/CD) Process.
Group 1 Page 1 Elizabeth Yanez Yohana Flores Nicole Lugotoff Art Gonzalez Jr.
© 2017 SlidePlayer.com Inc. All rights reserved.