Determine Whether Each of the Following Is an Internal Control

question 101

Essay

Determine whether each of the following is an internal control strength or weakness
1.Receiving department manager places an order with the vendor for merchandise inventory.
2.A voucher is used to certify a transaction and authorize recording of the liability.
3.Goods are received by the receiving department and documented with a receiving report.
4.Accounting department pays the vendor's invoice before goods are received.
5.Invoices are paid after completion of the invoice approval documenting the purchase requisition,purchase order,receiving report,invoice,and approval for payment.

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Definitions:

Scientific Knowledge

Knowledge based on scientific methods and empirical evidence, including theories, laws, and facts about the natural world.

AASB 138

The Australian Accounting Standards Board standard that specifies the accounting for intangible assets that are not dealt with specifically in another AASB standard.

Intangible Asset

Non-physical assets owned by a business, such as patents, trademarks, and copyrights, that have economic value.

Finite Life

A term used to describe assets or investments that have a fixed period of utilization or return, after which they cease to produce value.