• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Free ACCA & CIMA online courses from OpenTuition

Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

  • ACCA
  • CIMA
  • FIA
  • OBU
  • Books
  • Forums
  • Search
  • Register
  • Login
  • ACCA Forums
  • Ask ACCA Tutor
  • CIMA Forums
  • Ask CIMA Tutor
  • FIA
  • OBU
  • Buy/Sell Books
  • All Forums
  • Latest Topics

Congratulations to Jamil from Pakistan and Jeeva from Malaysia - Global Prize winners!
see all ACCA December 2022 Genius Hunt Competition winners >>

Specially for OpenTuition students: 20% off BPP Books for ACCA & CIMA exams – Get your BPP Discount Code >>

Amberjack co S/D 19- internal controls

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AA Exams › Amberjack co S/D 19- internal controls

  • This topic has 1 reply, 2 voices, and was last updated 1 year ago by Kim Smith.
Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • August 17, 2021 at 3:16 am #631787
    Noah098
    Member
    • Topics: 935
    • Replies: 352
    • ☆☆☆☆☆

    Goods dispatch notes (GDN) are given the same number as the order number to which they relate.
    The sales invoices are only raised on receipt of a GDN, and without separate sequential numbers, it is difficult for Amberjack Co to identify if any GDNs are missing as they are not likely to be raised in the same sequence as the sales orders.
    If GDNs are missing and the company fails to raise invoices in a timely manner, this could lead to a loss of revenue.

    Maam i just can’t understand how having same sequential numbers of GDN and order forms is a problem/control deficiency in any way?? i am finding this explanation very confusing!

    Could you possibly explain this with an example?

    August 17, 2021 at 6:52 am #631800
    Kim Smith
    Keymaster
    • Topics: 100
    • Replies: 6794
    • ☆☆☆☆☆

    ABC Co raises sales orders (SOs) ….
    2054
    2055
    2056
    2057
    2058
    2059
    2060
    2061
    …
    As goods are dispatched it raises GDNs …
    1004
    1005
    1006
    1008
    1009
    1010
    Can you see the missing GDN? There shouldn’t be missing GDN #s because they should be raised in strict numerical order. That’s why it’s important to identify gaps – if any (and hopefully none).
    Now suppose the same despatches were given the same # as the SOs:
    2058
    2055
    2059
    2060
    2061
    2057
    When you have reordered the numbers – what do the gaps in #s tell you? Only that most likely the GDNS have not been raised (for SOs not yet fulfilled).

  • Author
    Posts
Viewing 2 posts - 1 through 2 (of 2 total)
  • You must be logged in to reply to this topic.
Log In

Primary Sidebar

ACCA News:

 

ACCA My Exam Performance for non-variant Applied Skills exams is available NOW

NEW! Download the ACCA Pass Guide

FREE Verifiable CPD for ACCA Members

ACCA mock exams and debrief videos

ACCA Options:  “Read the Mind of the Marker” articles

Subscribe to ACCA’s Student Accountant Direct

Donate

If you have benefited from OpenTuition please donate.

ACCA CBE 2023 Exams

Instant Poll * How was your exam, and what was the result?

BT CBE exam was.. | MA CBE exam was..
FA CBE exam was.. | LW CBE exam was..

Specially for OpenTuition students

20% off BPP Books

Get BPP Discount Code

Latest comments

  • Amalsudheesh on FA Chapter 6 Questions Depreciation
  • John Moffat on FA Chapter 6 Questions Depreciation
  • John Moffat on PM Chapter 7 Questions Pricing
  • Amalsudheesh on FA Chapter 6 Questions Depreciation
  • roshpatel on PM Chapter 7 Questions Pricing

Copyright © 2023 · Support · Contact · Advertising · OpenLicense · About · Sitemap · Comments · Log in


We use cookies to show you relevant advertising, find out more: Privacy Policy · Cookie Policy