Discuss the Key Internal Controls That Should Be Present in the Receiving

question 138

Essay

Discuss the key internal controls that should be present in the receiving goods and services function in the acquisitions and payment cycle.

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Definitions:

Three Column Form

A documentation format usually used in accounting and bookkeeping that showcases debits, credits, and balance for individual accounts.

Debit

An accounting entry that either increases an asset or expense account, or decreases a liability or equity account.

Credit

An accounting entry that increases liabilities and equity or decreases assets, reflecting a transaction such as the sale of goods on account.

Balance

The amount of money in a financial account, or the difference between the total debits and credits recorded in an account.