TVES 12.2, 123) Taylor Electronics Company is engaging in manufacturin 12-25 (OBJECTIVES ents. The company purchases its raw materials from various suppliers is a description of the purchasing system on supervisors complete a requisition the of Taylor Electronics Is. This is triggered by checking the current level of inventory on the inventory em which has been updated to record the minimum and maximum required levels system waterials. Orders cannot be made if it is outside of the range set in the inventory ria of raw the authorized requisition form is submitted to the purchase ordering department 2. pwhich the staff will raise sequentially numbered purchase orders,in muliple cop- em. The requisition form is then authorized by the production manager ies based on the approved supplier list. The copies are sent to: b) the accounts payable department; he selected supplier, after obtaining the authorization of the purchasing director. c) the warehouse department It is the department's policy to update the supplier list with reference to the sup iers' quality and price on an annual basis. The purchasing director authorizes the orders prior to submitting to the selected supplier. 3, Upon receipt of goods, the warehouse department verifies the quantity to the suppli- ers despatch note and the purchase order sent to the warehouse department earlier The staff in warehouse department also checks that the quality of the goods received is satisfactory. A sequentially numbered goods received note is then generated which will be sent to the accounts payable department. 4. The accounts payable department matches the goods received note (from ware- house department) with the purchase order (from purchase ordering department) and invoice (from suppliers) to ensure the agreed prices and discounts have been honoured. After the checking process, the staff initials on the invoice to indicate the matching process is completed 5. Another accounts payable clerk enters the "matched" invoices onto the purchase system in batches. In this process, the clerk uses a batch control sheet which shows the number of invoices and the total value to be entered. Such information will then be checked against the system batch report. After inputting the information into th purchase system, the invoice will be marked as "LOGGED". The assistant accounts payable manager inspects the file of invoices on a weekly basis to ensure that all invoices have been recorded 5. The logged invoices are then reviewed and authorized for payment by the financ rector. Payments are made by the accounts department via bank transfer on a weekl is. After payment, the invoice will be marked as "PAID to avoid duplicate payments. ldentify the important controls and related purchase transaction-related audit objectives. List the procedures that a CPA will use in an audit of purchasing transactions in order Reo the operating effectiveness of internal controls har code scanning technologies that TVES 12.2, 123) Taylor Electronics Company is engaging in manufacturin 12-25 (OBJECTIVES ents. The company purchases its raw materials from various suppliers is a description of the purchasing system on supervisors complete a requisition the of Taylor Electronics Is. This is triggered by checking the current level of inventory on the inventory em which has been updated to record the minimum and maximum required levels system waterials. Orders cannot be made if it is outside of the range set in the inventory ria of raw the authorized requisition form is submitted to the purchase ordering department 2. pwhich the staff will raise sequentially numbered purchase orders,in muliple cop- em. The requisition form is then authorized by the production manager ies based on the approved supplier list. The copies are sent to: b) the accounts payable department; he selected supplier, after obtaining the authorization of the purchasing director. c) the warehouse department It is the department's policy to update the supplier list with reference to the sup iers' quality and price on an annual basis. The purchasing director authorizes the orders prior to submitting to the selected supplier. 3, Upon receipt of goods, the warehouse department verifies the quantity to the suppli- ers despatch note and the purchase order sent to the warehouse department earlier The staff in warehouse department also checks that the quality of the goods received is satisfactory. A sequentially numbered goods received note is then generated which will be sent to the accounts payable department. 4. The accounts payable department matches the goods received note (from ware- house department) with the purchase order (from purchase ordering department) and invoice (from suppliers) to ensure the agreed prices and discounts have been honoured. After the checking process, the staff initials on the invoice to indicate the matching process is completed 5. Another accounts payable clerk enters the "matched" invoices onto the purchase system in batches. In this process, the clerk uses a batch control sheet which shows the number of invoices and the total value to be entered. Such information will then be checked against the system batch report. After inputting the information into th purchase system, the invoice will be marked as "LOGGED". The assistant accounts payable manager inspects the file of invoices on a weekly basis to ensure that all invoices have been recorded 5. The logged invoices are then reviewed and authorized for payment by the financ rector. Payments are made by the accounts department via bank transfer on a weekl is. After payment, the invoice will be marked as "PAID to avoid duplicate payments. ldentify the important controls and related purchase transaction-related audit objectives. List the procedures that a CPA will use in an audit of purchasing transactions in order Reo the operating effectiveness of internal controls har code scanning technologies that