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Hello Sir,
If there is a deficiency in internal control in a given scenario that “invoices are authorized by finance director but payment is only made 75 days after receipt of the invoice”.
So in its explanation is it valid to write that “This may result in supplier dissatisfaction and supplier may decide not to sell goods in future leading to material shortage. Early settlement discounts may also be lost”.
Also for recommendation is it valid to write that “Company should pay its suppliers on timely basis. At regular intervals a follow-up should be done to check if any suppliers are being paid late”.
The point about a deficiency is that there isn’t a related control so there can be no ToC.
Sir there was a deficiency in internal control in a given scenario that “invoices are authorized by finance director but payment is only made 75 days after receipt of the invoice”. Question requirement was that for this deficiency we need to explain its impact, recommend a control and suggest a TOC
So for its explanation I asked you that is it valid to write that explanation is it valid to write that “This may result in supplier dissatisfaction and supplier may decide not to sell goods in future leading to material shortage. Early settlement discounts may also be lost”. You said fine
For recommendation of control I asked you is it valid to write that “Company should pay its suppliers on timely basis. At regular intervals a follow-up should be done to check if any suppliers are being paid late”. You said yes fine
Now I want to ask that for its TOC (1 mark) what we can write here?
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