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:

Drawer's Signature

is the signature of the person who has written and is responsible for the financial instrument, such as a check, authorizing its use and the payment it represents.

Customer's Negligence

A situation where a customer's failure to exercise reasonable care results in harm or damage.

Re-Credit

The process of restoring a previously deducted amount back into an account or credit rating.

Dishonored

describes a financial instrument, such as a check or a bill, that has been refused payment by the bank or person it was presented to.