Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AA Exams › System-based audit :Purchases system
- This topic has 4 replies, 2 voices, and was last updated 10 years ago by SIQI.
- AuthorPosts
- April 21, 2014 at 11:36 pm #165869
hi:
i ‘m just confused about the system- based audit for the purchases system, what’s the original operation for the system it means how it works and what’s objectives for this system and what controls do we do , and the normally weakness.
thanks.April 22, 2014 at 10:00 pm #165937Objectives:
Only order goods that are needed/authorised
Obtain good prices and adequate quality
Ensure right goods are received in right condition
Only authorise invoices for which goods have been received
Ensure invoices are for right prices
Post invoices to correct payables account
Pay invoices when due
Pay invoices once onlyControls include authorisation, comparison/matching, control accounts, cancelling invoices, reconciliations (to suppliers’ accounts). etc
April 22, 2014 at 10:40 pm #165940Hi
what’s the meaning for cancelling invoices, what kind of control it is
and when considering delivery of goods and invoicing . the authorization and approval controls what is matching supplier’s credit notes with goods returned notes? and besides this reconciliations accounts except for suppliers accounts and purchasing order and GRN , what else have for the accounts need to match?
thanksApril 23, 2014 at 7:55 am #165961Cancelling invoices = Stamp them ‘Paid’ or ‘Posted’ so that they cannot be paid again.
Before an invoice is approved you have to be sure that the goods were ordered and received.
If you return goods then you expect a credit note form the supplier to cancel out their previous invoice. Therefore match goods returned notes to eventual credit notes.
Reconcile the supplier’s balance on your payables account with statements revceived form suppliers stating what they think you owe.
I have no more to add on this subject.
April 23, 2014 at 10:31 am #165976THANKS
- AuthorPosts
- You must be logged in to reply to this topic.