PBL SESSION 2: EXPENDITURE CYCLE Gual Ipoh Sdn Bhd is a medium size company producing electronics products. Gual Ipoh Sdn Bhd has centralised most of its major operating departments. Policies and procedures has been established to guide the purchasing staff in daily departmental operations. The company has been experiencing problem with higher cost of operations which eventually affected its profit margin. The accounting and the internal control procedures relating to the purchases of materials by the company are described in the following terms. When the materials have dropped below the re-order level, request for orders are made by the production deparment verbally to the purchasing department. The purchasing staff immediately informs the clerk to prepare two copies of pre-numbered purchase order and directly sent to the respective regular supplier. The first copy of the purchase order is sent to the receiving department. The other copy is filed in the purchasing department. Upon receiving of ordered materials, a storeroom keeper then signs the supplier's delivery note. The storeroom keeper also issued copies of the informal notes on a piece of paper and sent to the purchasing department together with copies of the delivery note. The storeroom keeper then files the delivery note for future reference. The purchasing deparment then submitted a notes to the accounting department, where they are entered in the voucher register and filed according to payment due date. A). A well-designed Accounting Information System (AIS) should provide adequate controls to ensure that the objectives of designing AIS are met. Describe those objectives and each must including the examples from above cases (8 marks)