Kida Company "special Part Ii Expenditures In 2017 Kida Company purchased more than $90 million worth of office equipment under its ordering system, with individual orders ranging from $5,000 to $30,000. "Special" orders entail low volume items that have been included in an authorized user's budget. Department heads include in their anmual bodget requests for the types of equipment and their estimated cost. The budget, which limits equipment a department head can requisition, is approved at the types and dollar amounts of office beginning of the year by the board of directors. the purchasing deparipeare purchase requisition forms for equipment and forward them to the Kida's "special" ordering system functions as follows Purchasing Upon receiving a purchase requisition, one of five buyers verifies that the person requesting the equipment is a department head. The buyer selects the appropriate vendor by searching the various vendor catalogs on file. The buyer then phones the vendor, requests a price quotation, and gives the vendor a verbal order. A pre-numbered purchase order is processed with the original sent to the vendor, a copy to the department head, a copy to receiving, a copy to accounts payable, and a copy filed in the open requisition file. When the buyer is orally informed by the receiving department that the item has been received, the buyer transfers the purchase order from the unfilled file to the filled file. Once a month the buyer reviews the unfilled file to follow up on and expedite open orders Receiving: The receiving department receives a copy of the purchase order. When equipment is received, the receiving clerk stamps the purchase order with the date received and, if applicable, in red pen prints any differences between the quantity shown on the purchase order and the quantity received. The receiving clerk forwards the stamped purchase order and equipment to the requisitioning department head and orally notifies the purchasing department. .Accounts pavable: Upon receiving a purchase order, the accounts payable clerk files it in the open purchase order file. When a vendor invoice is received, the invoice is matched with the applicable purchase order, and a payable is set up by debiting the equipment account of the department requesting the items. Unpaid invoices are filed by due date, and at the due date a check is prepared. The invoice and purchase order are filed by purchase order number in a paid invoice file, and the check is then forwarded to the treasurer for signature Treasurer: Checks received daily from the accounts payable department are sorted into two machine-signed. The cashier keeps the key and signature plate to the check-signing machine and groups: those over $10,000 and those $10,000 and less. Checks for $10,000 and less are records all use of the check-signing machine. All checks over $10,000 are signed by the treasurer or the controller Subsequent events: Earlier this year, several accountants in the accounts payment department noticed a problem when they logged into the general ledger. They noticed that their names were no longer one of the choices in the system and in one case an entire account was displayed in language other than English or Spanish. At that point, the chief accountant immediately contacted Dell Shay of the IT division. When Dell logged into his computer and attempted to log Kida Company "special Part Ii Expenditures In 2017 Kida Company purchased more than $90 million worth of office equipment under its ordering system, with individual orders ranging from $5,000 to $30,000. "Special" orders entail low volume items that have been included in an authorized user's budget. Department heads include in their anmual bodget requests for the types of equipment and their estimated cost. The budget, which limits equipment a department head can requisition, is approved at the types and dollar amounts of office beginning of the year by the board of directors. the purchasing deparipeare purchase requisition forms for equipment and forward them to the Kida's "special" ordering system functions as follows Purchasing Upon receiving a purchase requisition, one of five buyers verifies that the person requesting the equipment is a department head. The buyer selects the appropriate vendor by searching the various vendor catalogs on file. The buyer then phones the vendor, requests a price quotation, and gives the vendor a verbal order. A pre-numbered purchase order is processed with the original sent to the vendor, a copy to the department head, a copy to receiving, a copy to accounts payable, and a copy filed in the open requisition file. When the buyer is orally informed by the receiving department that the item has been received, the buyer transfers the purchase order from the unfilled file to the filled file. Once a month the buyer reviews the unfilled file to follow up on and expedite open orders Receiving: The receiving department receives a copy of the purchase order. When equipment is received, the receiving clerk stamps the purchase order with the date received and, if applicable, in red pen prints any differences between the quantity shown on the purchase order and the quantity received. The receiving clerk forwards the stamped purchase order and equipment to the requisitioning department head and orally notifies the purchasing department. .Accounts pavable: Upon receiving a purchase order, the accounts payable clerk files it in the open purchase order file. When a vendor invoice is received, the invoice is matched with the applicable purchase order, and a payable is set up by debiting the equipment account of the department requesting the items. Unpaid invoices are filed by due date, and at the due date a check is prepared. The invoice and purchase order are filed by purchase order number in a paid invoice file, and the check is then forwarded to the treasurer for signature Treasurer: Checks received daily from the accounts payable department are sorted into two machine-signed. The cashier keeps the key and signature plate to the check-signing machine and groups: those over $10,000 and those $10,000 and less. Checks for $10,000 and less are records all use of the check-signing machine. All checks over $10,000 are signed by the treasurer or the controller Subsequent events: Earlier this year, several accountants in the accounts payment department noticed a problem when they logged into the general ledger. They noticed that their names were no longer one of the choices in the system and in one case an entire account was displayed in language other than English or Spanish. At that point, the chief accountant immediately contacted Dell Shay of the IT division. When Dell logged into his computer and attempted to log
