Ais Final

Front 1

What does Inventory control do?

Back 1

initiate requisitions, maintain inventory subsidiary ledger

Front 2

what does purchasing do?

Back 2

(authorization) - select vendors, prepare POs, maintain and monitor OPEN P.O. file

Front 3

What is Receivings' job?

Back 3

(custody) -accept goods from supplier, prepare receiving document

Front 4

What does Storeroom or warehouse do?

Back 4

(custody)- maintain custody of goods

Front 5

What does accounts payable do?

Back 5

(recordkeeping)- maintain unmatched PO file as contro over purchasing and to identify unrecorded transactions, matching of supporting documentation (vouchering), record in voucher register

Front 6

What does the Cash Disbusements/cashier do?

Back 6

(custody)- write checks,maintain check register, cancel supporting documents so they can be used to support a fradulent transaction

Front 7

Name the six Expenditure cycle documents.

Back 7

purchase requisition, purchase order, receiving document, vendor's invoice, voucher, check

Front 8

Solve: A purchasing clerk orders materials from his brohter-in-law who does not provide the best price.

Back 8

purchasing agents must complete conflict of interest disclosures; competitive bids should be obtained for items to be purchased

Front 9

Solve: A purchasing clerk places an order with a vendor from who he obtains a "kickback".

Back 9

Competitive bidding process, and a review of bids by purchasing supervisonrs

Front 10

Solve: A second copy of a vendor's invoice for goods is accidentally paid.

Back 10

Each invoice must be vouchered--matched with a requisition, P.O. and receiviing document

Front 11

Solve: A second copy of a vendor's invoice for goods is accidentally paid.

Back 11

Route invoice to person authorizing service for approval prior to vouchering

Front 12

Solve: An A/P clerk detaches a P.O. and receiving document off of a paid voucher and uses them to support a fraudulent invoice.

Back 12

Invoice and other supporting documents should be cancelled, i.e., stamped paid by the party preparing the check.

Front 13

Solve: A vendor's invoice overcharges for goods purchased due to an improper price

Back 13

During the vouchering proccess, the A/P clerk compares the price on the invoice to the authorized price on the P.O.

Front 14

Solve: A vendor's invoice overcharges for goods purchased due to extension and/or addition errors on the invoice

Back 14

During the vouchering process, the A/P clerk rechecks the extensinos (price x quantity), totals, tax, and shipping charges on the invoice

Front 15

An invoice is misplaced and not vouchered on a timely basis. As a result, the company loses out on a significant payment discount for not paying wihtin the discount period

Back 15

A/P maintains an unmached document file which is reviewed daily to determine if any documents are missing

Front 16

Receiving/storeroom personnel get in a hurry and just write on the receiving document the amount shown on the P.O. as the amount received when actually fewer goods were received.

Back 16

Send a "blind" copy of the P.O. to receiving--the quantities are omitted, to force them to perform an accurate count.

Front 17

Receiving clerks accept a shipment of goods that were not enven ordered by the company.

Back 17

The receiving department must have a P.O. on hand before thaey can accept a shipment.

Front 18

Solve: An accounts payable clerk embezzles by recording a non-existent invoice in the Voucher Register and then cuts a check for that invoice

Back 18

Accounts payable (record-keeping) functions should be segregated from check generation (custody funcitons)

Front 19

Solve: A cashier embezzles funds by writing a check to themselves or a fictiious company and they do not record it in the Check Register

Back 19

Since the check clears the bank, but is not on the books, an independent party reconciling the bank statement will detect this embesslement

Front 20

Solve: A cashier embezzles funds by writing a check to themselves or a fictitious company and they do record it in the check register.

Back 20

The General Ledger A/P account will disagree with A/p subsidiary ledger

Front 21

Receiving department personnel steal inventory and then claim it was sent to the warehous

Back 21

The warehouse clerk must count the goods and sign a copy of the receiving document relieving the receiving clerk or custodial responsibility.

Front 22

Solve: Inventory is being stolen by warehouse clerks

Back 22

Perpetual inventory recors should be maintained and the records periodically compared with inventory actually on hand.

Front 23

Solve: Tlhe purchasing clerk orders more items than are need from a vendor resultin in excess warehousing, insurance, and interest costs.

Back 23

The use of an inventrory model such as EOQ which determines the order quantitiy that minimizes total carrying and ordering costs or the use of MRP (material requisition planning) depending on the nature of the biz.

Front 24

Solve: A inventory control clerk fails to order needed merchandise and as a result the firm suffers significant lost sales from being out of stock.

Back 24

Use an inventory model, such as Reorder Point system, which based on usage rate, lead time , and safety stock, identifies at what point the goods are to be ordered.

Front 25

Solve: A purchasing clerk enters the wrong Vendor # for goods bieng ordered. Now there are out of stock problems, due to late recognition.

Back 25

Closed-loop verification; or the primary and secondary vendors should alrady be attributes in the inventory record for each item

Front 26

ordering errors, i.e., non-optimal order quantities, ordering too late, ordering from wrong vendor

Back 26

Computer applications, will basically perform the job of the inventory control clerk. If here is stability in the EOQs then the program might automatically generate the P.O.

Front 27

Solve:Ordered materials do not arrive on time and force costly rescheduling of production runs.

Back 27

The purchasing department maintains an open purchase order file which is reviewed daily. In a computerized system and Open Purchase order will be generated and reviewed daily by the purchasing department

Front 28

Solve: Purchasing continues to order from vendors who ship goods late and/or large numbers of defective items

Back 28

Vendor Performance Report needs to be produced periodically and reviewed, containing: % shipments late, average days late, % of defective items, %of shipments with billing errors

Front 29

What functions are replaced when changing from a manual purchasing/receiving system to an online computerized purchasing system?

Back 29

Inventory control, since primarily a posting process

Front 30

What is the Reorder Report?

Back 30

used by purchasing to determine what, when, and how much to order

Front 31

Open P.O. report functions?

Back 31

used by purchasing to monitor the status of an outstanding order

Front 32

Vendor peformance report?

Back 32

used by purchasing in detemining vendor selection

Front 33

A/P Report (Invoices Due)?

Back 33

used by Treasureer to forecast cash flows

Front 34

Expense Analysis?

Back 34

used by Controller to control expenses

Front 35

Order of stages in development process

Back 35

Planning
Analysis
Conceptual Design
Physical Design
Implementation
Operation

Front 36

Techniques used to survey existing system?

Back 36

interviews, questionnaires, system flowcharting, review of system documentation

Front 37

Types of feasability

Back 37

technical- hardware/software obtainable; economic- is the project affordable given current budget constraints, do estimated benifits exceed estimated costs, operational- can the proposed system be practically implemented

Front 38

"Physical to physical"

Back 38

Go from system flowchart of existing model(physical) to DFD's Hierarchical charts (Logical) to DFD's Hierarchical charts of new system to physical model of new system

Front 39

What is the order of physical design steps?

Back 39

Output Design (reports), database design (produce), source documents (capture)- control design is done throughout the process

Front 40

What are the alternatives for converting form the old system to the new system?

Back 40

Parallel approach, Direct (cold turkey approach), Modular Approach

Front 41

Parallel Approach

Back 41

use both old and new system for one month and compare results

Front 42

Direct (cold turkey) approach

Back 42

stop using old system at end of one period and start using new system the next period; obviously the riskiest approach

Front 43

Modular approach

Back 43

implement new system one subsystem at a time; can be used in combination with either of above two approaches

Front 44

Different Types of Maintenance

Back 44

corrective, perfective, and adaptive

Front 45

Corrective maintenance

Back 45

to fix errors (17% of maintenance costs)

Front 46

Perfective maintenance

Back 46

to improve performance of an application (60%)

Front 47

Adaptive maintenance

Back 47

adjust applications to meeet changing business needs (18%)