Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Kludney Incorporated has the following processes related to purchasing: When it is determined that an item should be ordered, the purchasing department prepares a three-copy
Kludney Incorporated has the following processes related to purchasing: When it is determined that an item should be ordered, the purchasing department prepares a three-copy purchase order. The first copy is mailed to the vendor, the second copy is filed by P0 number in the purchasing department, and the third copy is forwarded to inventory control. Inventory control updates the inventory ledger with the quantities that were ordered and files the purchase order copy by date. When ordered items arrive at the receiving dock, the packing slip is inspected and a two-copy receiving report is prepared. The first copy is forwarded to the purchasing department, where it is filed with the purchase order. The 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 account payable department reviews the invoice and related packing slip, updates the accounts payable ledger, and files the invoice by date. The packing slip is returned to the receiving department. The general ledger department reconciles the inventory ledger and the accounts payable sub ledger and updates the general ledger accounts. What are some weaknesses in Kludney's purchasing process and controls
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started