Question

1. _____________________________________ will close the open purchase order file.

2. A purchasing system that employs _________________________________________ does not use a purchase order.

3. The open payable file is organized by ____________________________ to ensure prompt payments

4. Automation leads to collapsing of traditional segregation of duties especially when computer programs ________________________ and _________________________ purchase orders. ____________________________can compensate for the lack of segregation of duties.

Answer 1

a) receiving report

because purchase order is closed only if all item on order have been received.

b) made for purchase of $1000 or less per article.

because up to $1000 their is no need to make purchase order above $1000 purchase order is necessary.

c) ensure suppliers invoice are approved and paid within agreed time.

because prompt payments is a commercial discipline which requires business to agree fair and reasonable payment terms with their suppliers.

d) automation leads to collapsing of traditional segregation of duties especially when computer program implemented and avoid purchase orders

Because in modern era traditional methods are replaced by new program as purchase order are replaced by computer software sap .

e) Disclosing lack of segregation of duties to the external auditors during the annual revuer

Because in the current scenario their is high risk of frauds,mmisrepresentations and misuse of power that's why it is to safe to disclose lack of duties to external auditors .