CHAPTER - 5 : The Expenditure
Cycle Part I: Purchases and Cash
Disbursements Procedures
Learning Objectives
The Conceptual System
Overview of Purchases and Cash
Disbursements Activities
Purchases Processing Procedures
Vouchers Payable System
The Cash Disbursements Systems
Expenditure Cycle Controls
Transaction Authorization
Segregation of Duties
Supervision
Accounting Records
Access Controls
Independent Verification
Physical Systems
A Manual System
Inventory Control
Purchasing Department
Receiving
AP Department
General Ledger Department
The Cash Disbursements Systems
AP Department
Cash Disbursements Department
AP Department
General Ledger Department
Concluding Remarks
Computer-Based Purchases and
Cash Disbursements Applications
Automating Purchases Procedures
Using Batch Processing Technology
Data Processing Department: Step 1
Purchasing Department
Data Processing Department: Step 2
Receiving Department
Data Processing Department: Step 3
Accounts Payable
Data Processing Department: Step 4
Cash Disbursements Procedures
Data Processing Department
Cash Disbursements Department
Accounts Payable Department
Reengineering the Purchases/Cash
Disbursements System
Data Processing
Receiving Department
Data Processing
Control Implications
The Automated System
Improved Inventory Control.
Better Cash Management
Time Lag
Purchasing Bottleneck
Excessive Paper Documents.
The Reengineered System
Segregation of Duties
Accounting Records and Access
Controls.