1. Business
  2. Accounting
  3. question 6 internal control and governance 15 marks the...

Question: question 6 internal control and governance 15 marks the...

Question details

Question 6 Internal Control and Governance 15 marks

The following purchase order (Figure 6.1) was sent by Giddy Up Pty Ltd to Stable Supplies Ltd. The second copy of the purchase order (Figure 6.2) from Giddy Up was sent to the receiving department and was stamped and signed when the goods were received.

Required
a)
Identify and explain four control features that are followed in the purchase order sent to the vendor (Figure 6.1).

b) Identify and explain four control features that are followed in the Copy of purchase order routed to the receiving department (Figure 6.2).

c) Discuss four advantages of those control features followed in the purchase order sent to the vendor (Figure 6.1).

d) Discuss four advantages of those control features followed in the copy of purchase order routed to the receiving department (Figure 6.2).

e) What controls could have been present when the purchase requisition details (not shown) were entered into the computer and the purchase order generated? Discuss two controls that should have been followed when purchase requisition entered into the computer.

Figure 6.1 Purchase order sent to vendor: 

                                             Purchase Order
                                            Giddy up Pty Ltd
                                         1 Winning Post LAne
                                               Flamenington 

TO:  Stable supplies 4 Fetlock Road Caulfield 

Order date: 1/11/2012            Purchase Req No.: 61111

Product No. Description Price Quantity Total
A-187 Barrier Blanket 150.00 5 750.00
A-199 Riding Crop 45.00 4 180.00
C-297 Racing saddle-light 300.00 1 300.00
G-851 Norton bit 80.00 3 240.00
      TOTAL: -----> 1470.00

 

Figure 6.2 Copy of purchase order routed to the receiving department:  

                                               Purchase Order
                                              Giddy up Pty Ltd
                                           1 Winning Post LA
                                               Flamenington             

TO:  Stable supplies 4 Fetlock Road Caulfield                 Received 07 NOV 12            

  Order date: 1/11/2012            Purchase Req No.: 61111   

Product NO. Description Price Quantity Total
A-187 Barrier Blanket      
A-199 Riding crop      
C-297 Racing saddle-ligh      
G-851 Norton bit      
      TOTAL:----->  

             

 

Solution by an expert tutor
Blurred Solution
This question has been solved
Subscribe to see this solution