14. Financial systems And Procedure

Question 1

What are adv of formal systems ?

Answer 1

All trns recorded same way
New staff trained quickly
Errors easily identified
Most efficient
User can refer to procedure if in doubt

Question 2

What must be considered when creating system ?

Answer 2

Objectives, inputs, outputs, potential errors

Question 3

Purchase system (6)

Answer 3

Requisition
Ordering
Order received
Invoice received
Recording invoice
Payment

Question 4

Sale systems (6)

Answer 4

Order received
Order process
Dispatch
Invoice sent
Inv recording
Payment received

Question 5

Outline Cash system

Answer 5

Cheques are issued/received — then recorded— then paid into bank

Question 6

What are potential errors in systems ?

Answer 6

Errors in calc./sending goods/invoice, fraud

Question 7

What are measures of control ?

Answer 7

Supervisors, authorisation, inventory check, obtaining price quote, training

Question 8

Purpose of control

Answer 8

Safeguard company assets
Efficiency
Prevent fraud and error

Question 9

Automated vs manual systems

Answer 9

Automated
+ : fast, secure, accurate
- : expensive, can crash

Manual
+ : low capital cost, no comp experience required
- : slow, more errors