AIS Final Weaknesses and control 13 PDF

Preview

Summary

AIS Final Weaknesses and control 13...

Description

10 CONTROL WEAKNESSES There is no segregation of purchase duty due to any employee can request a purchase There is no previous check on supplier which can lead to unqualified suppliers or even kick back fraud There is no reconciling the invoice with the receiving department and purchase department for checking received inventory which can lead to incorrect invoicing No official government currency exchange took place because Bart exchange currency with his sister Lisa. Where there should be transferred funds checking list There is no online bank transfer to the overseas suppliers for their payments. This may lead to loss of cash or theft There is no accounts payable clerk or department to help Bart payment the suppliers on time There is no goods received checking either with purchase order pr packing slip which may lead to incorrect inventory receiving oir inventory theft There is no record of paid invoices or reconciling invoice with the suppliers There is no bank reconciliation form the company which can lead to loss of finance

10 RELATED RECOMMENDATIONS There should be a requisitioning department, and it is the only department to place purchase requests for the company The suppliers must be checked thoroughly with a suppliers and vendors checking list Reconcile the invoice with purchasing and receiving department for receiving inventory purchases price

There should be an exchange of currency with a government department which follow the economy because Bart might receive “inappropriate discount” form his sister Lisa and make profit for himself Bart should transfer the payment to the suppliers via online banking or hire an accounts payable clerk to do it There is must be an account payable clerk to assist Bart paying the suppliers on time for the sake of ethics and faith to the suppliers The receiving department should obtain a copy of purchase order and the reconcile it with the packing slip to prevent inventory theft or loss in process There should be payment record books and computer record of invoices payment to prevent overpaid invoices exist The company should reconcile their financial statement with the bank in order to prevent loss of money...