Beberlie T.

Laping

Answers

1. As to the issuance of the purchasing order it shows that theres no multi part of purchase oder for
each vendors when there are plenty of purchases, this will be related as to control activities in which
policies and procedures needed to ensure the appropriateness of actions to do. Thus, it does not issue a
PR so basically the manager or the purchasing department doesn't know what exactly the item and
services requested. Therefore some information may not be valid as to the processing of the flow chart.

2. The purchase transaction should not be authorizes by the purchases because only the purchasing
department is authorized as to the purchase transactions for the reliability of information. So that
purchase orders are accurately and completely prepared and recorded on a timely basis otherwise it will
cause business risks to the company.

3. The inspection of recieving items should be on basis of blind copy of purchase order provided nor by
the packing slip because it is needed for security and privacy purposes that after processing the PO in
purchasing department it goes to the recieving where the information reconciled with blind copy of the
PO and passes through a multipart receiving report. Simply in every inspection blinded copies are
needed so that the original form of transacrion shall be kept to those persons who are authorized only
to do such specific work.

4. The inventory subsidiary ledger is updated by the inventory control, in this aspect it depicts the
lacking part of information and monitoring as the general ledger only summarizes transactions and it
should not be updated by the inventory control because the inventory functions as monitoring whether
when does the company purchase such product or it signifies an out of stock.

5. The recording in Accounts payable sunsidiary ledger is without the supporting documents as recorded
only on invoice receiving. As we know each day the AP clerk reviews voucher payable file to know what
are the transactions or items due. After reviewing the AP clerk sends the voucher with supporting
documents to the cash disbursements. Therefore, if theres no supporting documents the information
wouldn't be completed and invalidated the conpleteness and cleeic accuracy of the information

6. The journal vouchers and summary reports from AP department, cash disbursement system and
inventory control should be recieve by the general ledger. Those transaction undergo by those
departments shall be receive by the general ledger as it summarize all those information thus, if those
items does not recieve by the generak ledger simply the purchase phase of expenditure cycle shall not
be completed.