Group Project

ACCT 422, SECTION 7980 Group Project Internal Control and size up programme Case Johnson Machinery Company Jamie Buckler Metasebia Debissa Robert Dixon Maia Korashvili Richard marshal May 11, 2011 1.Flowchart for the acquisition and honorarium cycle for Johnson Machinery Company ? 2. con analyzeation of controls in existence for all(prenominal) of the vi transaction-related audit objectives for acquisitions. position get incision employee verifies whether there is a receiving report and a leveraging sanctify for each poster that is received from vendors forrader approving the peak for payment. Completeness When the get segment employee enters the approved grease ones palms requisition into the system, the system mechanically generates a purchase crop in sequential order. The coinier uses pre-numbered checks to bell ringer checks for a payment. trueness The purchasing department compares the card with the electronic c opy of the purchase order for price and terms, and the invoice sum of m unityy with the receiving departments report. The purchasing department also checks footings, extensions, and discounts on the vendor invoice and and so approves the invoice for payment by initialing the invoice.

The coupon role in the accounting department makes sure that the checks were correctly prompt beforehand sending them to the vendor. Posting and Summarization The system automatically prepares checks and a transaction list for preparation of a cash disbursements journal, updates the accounts collectible master file, which minim izes human error in posting. categorisati! on later on receiving the approved invoices from the purchasing department, the accounting department/voucher partitioning codes the invoices for account distribution. Timing Date of receiving report is compared to invoice date. 3. For each control in part 2, list of one test of control procedure for verifying its effectiveness. Occurrence Purchasing department employee verifies...If you want to get a full essay, order it on our website: OrderCustomPaper.com

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