Module 4 Accounting Information Systems and Controls 1 Flashcards
What is a purchase requisition?
An internal document raised by the user department to request the financing to purchase goods/services
What is a purchase order?
Raised by the purchaser to send to the seller of goods to request purchases of goods or services
What is a sales order?
raised by the seller of ordered goods to record the receipt of a purchase order
What is a goods despatch note? GDN
Internal form completed by the despatched of ordered goods confirming the goods sent out to the customer
What is a goods received note? GRN
internal document completed by the warehouse confirming the specification of the goods received
What is an invoice?
A document sent by the seller of goods or services to the buyer detailing the amounts due, discounts available, payment dates and administrative details.
What is a remittance advice?
Remittance advice is submitted by the buyer to the seller in association with a payment that details the nature and purpose of the payment
What is a credit note?
Sent by a seller to a customer to cancel an invoice charged
What are the phases of a typical sales cycle?
- Customer places order (sales department)
- Order fulfilled and despatched (Warehouse department)
- Customer invoiced for goods (Finance department)
- Customer pays for goods (Finance department)
- Goods returned (may replace phase 4) (Warehouse department)
- Credit note issued/refund given to customer (Finance department)
Whare are the phases of a typical purchases cycle?
- Place order (Purchase department)
- Receive goods (Warehouse department)
- Invoice received (Finance department)
- Payment for goods (Finance department)
- Return goods (Warehouse department)
- Credit note/refund received (Finance department)
What is the approach to design and control any accounting information system?
1 - Break the process down into phases
2 - Consider the objectives for that phase
3 - Decide on the relevant documentation for the phase
4 - Consider the ‘what can go wrongs’ (the risk)
5 - Design controls to address these ‘what can go wrongs’