Proper Documentation. Properly designed and utilized forms facilitate adherence to prescribed internal control structure policies and procedures. One such form might be a multicopy purchase order, with one copy intended to be mailed to the vendor. The remaining copies would ordinarily be distributed to the stores, purchasing, receiving and accounting departments.

The following English language purchase order is currently being used by Reyes Magos Industrial, SA.

Required
A. In addition to the name of the company, what other necessary information would an auditor recommend be included in the illustrative purchase order?
B. What primary internal control functions are served by the purchase order copies that are distributed to the stores, purchasing, receiving and accounting departments?

Transcribed Image Text:

Purchase order Send invoice only to: 23 Camino de Santiago Zaragoza, Spain To: Ship to: Date to be Ship Discount Freight Advertising Special Shipped Via Terms Terms Allowance Allowance Quantity Description