Final Exam Chapter 9 Flashcards
is a recurring set of business activities and related information processing operations associated with purchasing goods and services, and paying for those goods and services
expenditure cycle
what do you do if you are having problems with inaccurate or invalid master data
employee data processing integrity controls
restrict access to master data
review all changes to master data
what do you do if you are having problems with unauthorized disclosure of sensitive information
use physical and logical access controls and encrypt data
what do you do if you are having problems with loss of destruction of data
back up data regularly
implement a disaster recovery plan
what do you do if you are having problems with poor performance
use managerial reports to evaluate company and individual performance
trigger purchase requisition generate purchase order
ordering goods and services
accept delivery, count and inspect goods
reviewing and storing goods
approve vendor invoices and pay vendor invoices
paying for goods and services
paper document or electronic form that formally requests a supplier to sell and deliver specified products at specified prices
purchase order
committed to purchase specified items at a designated price from a particular supplier for a set period of time
blanket purchase order
paper document or electronic form that tells you who is requesting the goods where and when they should be delivered, the quantity of the items and department number and account number to be charged
purchase requisition for goods
what can you included to make ordering items more efficient
EDI to transmit purchase orders vendor managed inventory systems reverse auctions and pre award audits
what can you do to help prevent inaccurate inventory records
use perpetual inventory method
use barcodes and RFID tags
conduct periodic physical counts of inventory
what do you do to prevent purchasing items that are not needed
us the perpetual inventory method
review and approve purchase requisitions
centralize the purchasing function
whatdo you do to prevent purchasing goods at inflated prices
store and consult price lists for frequently purchased items
solicit competitive written bids for high cost and specialized products
review purchase orders to ensure policies have been followed
use budgetary controls
what can you do to prevent purchasing goods of inferior quality
purchase only from approved suppliers
review and approve purchase form new suppliers
hold purchasing managers responsible for rework and scrap costs
track and monitor product quality by supplier
what can you do to prevent purchasing from unreliable suppliers
require suppliers to possess quality certification
collect and monitor supplier delivery performance data
what can you do to prevent purchasing form unauthorized suppliers
maintain a list of approved suppliers
configure the system to permit purchase orders only to approve suppliers
review and approve purchase form new suppliers
employ EDI specific controls for purchase orders
how do you prevent kickbacks from suppliers
require purchasing agents to disclose financial and personal interests suppliers
prohibit purchasing agents from accepting any gifts from potential existing suppliers
train employees in how to respond to offers of gifts from suppliers
rotate job duties
require vacation leave
conduct supplier audits
what do you do about accepting unordered items
require existence of an approved purchase order prior to accepting any delivery
what do you do to prevent mistakes in counting
do not inform the receiving employees about the quantity ordered
require the receiving employees to sign receiving reports to create accountability
offer incentives for catching discrepancies
document transfer of goods to inventory
use bar codes or RFID tags
configure system to flag discrepancies between received and ordered quantities
what do you do to verify receipt of services
hold supervisors responsible for all costs
compare actual v. budgeted expenses and investigate discrepancies
conduct periodic reviews of contracts for services including audits of supplier records
what do you do to in the case of theft of inventory
restrict physical access to inventory
document all transfers of inventory between receiving and inventory employees
conduct periodic physical counts of inventory and reconcile to recorded quantities
segregate inventory receiving recording and custody functions
what do you do in the case of errors in supplier invoices
verify the mathematical accuracy of the invoices
require detailed receipts for procurement cards and verify monthly statement accuracy
use an ERS system
restrict access to the supplier master data
verify accuracy of freight charges
what do you do if you are having mistakes in a/p
use appropriate data entry and processing controls
reconcile subsidiary accounts payable records with the general control account
what do you do if you are having problems with taking advantage of discounts for prompt payment
file invoices by due date of discounts
design systems to track due dates
prepare cash flow budgets
what do you do if you are having problems paying for items not yet recieved
require that all suppler invoices be matched to supporting documents from both the receiving and inventory control departments
for services have tight budgetary controls and carefully review departmental expenses
Require receipts for travel expenses
use corporate credit cards for travel expenses
what do you do if you are having problems with duplicate payments
require a complete voucher package for all payments
cancel all supporting documents when a payment is made
what do you do if you are having theft of cash problems
restrict physical access to cash, blank checks and check signing machines
have checks numbered sequentially and periodically accounted for by the cashier
segregations of duties
require 2 signatures
restrict access to the approved supplier list
have an independent party reconcile bank statements
how do you deal with the theft of petty cash
handled by an employee who has no other cash handling or accounting responsibilities
set up an imprest fund
cancel the vouchers when the fund is replenished
audit the fund on a surprise basis and hold the person in charge of the fund responsible for shortages
how do you deal with Electronic funds transfer fraud
use strict physical and logical access controls
log user and location of originating terminal
encrypt all transactions
use embedded audit modules to electronically monitor the transactions and flag suspicious items
use a dedicated computer and browser for online banking
place ACH blocks on accounts not used for payments
how do you deal with check alterations
use check protection machines that imprint amounts
use inks that are difficult to alter
print checks on watermarked paper
set up a positive pay arrangement with the bank
do a bank reconciliation promptly
attributes about an entity
field
related group of fields
record
related group of records
file
related group of files
database
fles are logically compinedes and made accessible to various systems
data integrations
with data in one place it is more easily accessed by authorized users
data sharing
eliminates the same data being stored in multiple files thus reducing inconsistency in multiple versions of the same data
minimizing data redundancy and data inconsistency
data is separate from the programs that access it changes can be made to the data without a change in the programs and vice versa
data independence
relationships between data from various organizational department can be more easily combined
cross-functional analysis
interface between software applications and the data in files
database management systems
person responsible for maintaining the data base
database administrator
information about the structure of the database
data dictionary
depends on explicitly knowing how the data is actually arranged in a file and where the data is stored on the computer
physical view
a schema separates storage of data from use of the data and unnecessary to explicitly know how and where data is sotred
logical view
an attribute or combination of attributes that can be used to uniquely identify a specific row in a table
primary key
an attribute in one table that is a primary key in another table
foreign key
changes to existing data are not correctly recorded due to multiple records with the sam data attributes
update anomaly
unable to add a record to the data base
insert anomaly
removing a record also removes unintended data from the database
delete anomaly
4 requirements for a rational database
- every column must be single valued
- primary keys must contain data
- foreign keys must contain the same data as the primary key in another table
- all other attributes must identify a characteristic of the table identified by the primary key
