Module 5 Accounting Information Systems and Controls 2

Question 1

Stock Cycle

Answer 1

1. Recive goods
2. Stock movements
3. Stock holding
4. Stock Valuation
5. Order fulfilled and despatched

Question 2

How to track stock movements?

Answer 2

Goods received notes and goods dispacthed notes can be used to indicate where stock is moved around

Question 3

What procedures should managment ensure during a stock count?

Answer 3

• Provide clear instructions
• Instructions should be followed
• No stock movement
• Stock count sheets with the items they have to count but NOT the expected amount
• Two memebers of staff not involved in the handling of stock
• Completed in pen and signed
• Items should be marked once counted
• Any difference should be investigated

Question 4

Fixed Asset purchase cycle

Answer 4

1. Identify the need for assest
2. Seek Managment/board approval
3. Order asset
4. Receive asset/transfer ownership
5. Receive invoice
6. Payment

Question 5

Payroll Phases

Answer 5

1. Work done and time recoreded
2. Calculation of payroll liability
3. Payment of payroll liability