Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Kludney Incorporated has the following processes related to purchasing: When it is determined that an item should be ordered, the purchasin department prepares a three-copy

image text in transcribed
Kludney Incorporated has the following processes related to purchasing: When it is determined that an item should be ordered, the purchasin department prepares a three-copy purchase order. The first copy is mailed to the vendor, the second copy is filed by PO number in the purchasing department, and the third copy is forwarded to tory control updates the inventory ledger with the quantities that were ordered and files the purchase order copy by date. inventory control. Inven- hen ordered items arrive at the receiving dock, the packing slip is inspected and a two-copy receiving report is prepared. The first copy is for- warded to the purchasing department, where it is filed with the purchase second copy is filed in the receiving department by date. The packing slip is forwarded to the accounts payable department. Vendors mail invoices directly to the accounts payable department. The accounts payable department reviews the invoice and related packing slip, prepares a cash disbursement voucher, updates the accounts payable ledger and files the invoice by date. The cash disbursement voucher is forwarded to the cash disbursements department. The packing slip is returned to the receiving department. The cash disbursements department prepares a two- copy check, mails the first copy to the vendor, and forwards the second copy to the general ledger department. The cash disbursement voucher is for- warded to the accounts payable department where it is filed with the invoice. The general ledger department updates the general ledger accounts, using the second copy of the check, and then forwards the check copy to cash disbursements to be filed by check number. Required 1. Draw a document flowchart of the purchase processes of Kludney Identify any weaknesses in internal controls within the purchase processes and indicate the improvements you would suggest

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Conducting An Institutional Diversity Audit In Higher Education A Practitioners Guide To Systematic Diversity Transformation

Authors: Edna Chun, Alvin Evans, Benjamin D. Reese

1st Edition

1620368196, 978-1620368190

More Books

Students also viewed these Accounting questions

Question

Explain when a commitment becomes a recorded liability.

Answered: 1 week ago