Topic 4 - Internal Control Systems

Question 1

Which two deocuments assist with the cut off of purchases?

Answer 1

• Goods received note
• Supplier invoices

Question 2

What internal control helps provide assurance that all sales have been recorded in the accounts?

Answer 2

matching pre-numbered dispatch notes to invoices

To issues a sales invoice you must have a GDN first, therefore to ensure completeness you match the GDN to the sales invoice

Question 3

What internal control helps ensure that a receivables ledger is raised for all goods despatched notes to customers?

Answer 3

pre-numbered despatch notes are matched with sales invoices and unmatched items are followed up

again, to be able to raisea receivable ledger you must have a GDN, therefore you must match pre-numbered GDN to the inoivce

Question 4

How to avoid the risk that goods accepted may not have been ordered

Answer 4

comparison of goods recevied notes to purchase orders

If we ordered the good there must be a purchase order

Question 5

How to avoide the risk that invoices may not be recorded, resulting in non-payment

Answer 5

match invoices to good received notes and review unmatched good received notes
sequential ordering of purhcase invoices