from accounts payable department‚ in addition‚ he was the only responsible for turning the invoices in to VP for approval as well. It is clear that the fraud has occurred due to lack of separation of duties in processing of invoices. According to the auditor‚ McGrane‚ “For any business transaction‚ the invoices should be dispatched independently to approving authority. Once signed‚ the approved invoices should be sent independently to accounts payable. When the check is prepared by accounts payable
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Expenditure Cycle The employee prepares a purchase requisition and has a supervisor approve it. The supervisor retains Copy 2 of the pre-numbered purchase requisition for the department‚ sends Copy 1 to the Purchasing Department and Copy 3 to Accounts Payable. When the Purchase Department receives the purchase requisition‚ they search the approved vendor list and consult the listed prices for the goods desired for each vendor. Once a vendor has been selected‚ five copies of a pre-numbered purchase
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Receivable: o December’s Sales were $10‚000 o 80% of sales is collected in the quarter in which they were made o 20% of sales collected in the following quarter in which they were made o Bad Debts is negligible Accounts
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environment. Hence‚ that is the reason why I decided to undergo my internship programme with Malaysia Airlines. I began my internship programme on 1st February 2013 with MAS and it ends on 31st July 2013. During that time‚ I was attached to Accounts Payable Department‚ 4th Floor‚ Admin 2 Building‚ MAS Complex A‚ SAAS Airport‚ 47200 Subang‚ Selangor. The department is headed by Cheah Paik Un and the Manager of the department is Pn. Nik Azlina Bt Nik Yusoff. I was put under the supervision of Nurul
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TOPIC: Financial Ratio Analysis Section A (i) CALCULATION OF FINANCIAL RATIOS Financial Ratios Actual 30 June 2015 Forecast 30 June 2016 (a) Operating Profit Margin (b) Interest cover (c) Inventory days (d) Receivable days (e) Payable days (ii) COMMENTARY (a) Operating profit margin The operating profit margin express a company’s profit in percentage form after paying all the variables costs‚ such as wages and raw materials. By using operating profit (gross profit minus operating
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Efficiency‚ Effectiveness and Economy Effective Best Practices Criteria Performance Measure (1) Pay based on receiving approval only Accounts payable are paid based on receipt Time required to settle an accounts payable (2) Route all invoices directly to accounts payable Reduced time in paying the suppliers Days Payable Outstanding (3) Split payables processing based on discounts The company pays within the discount period‚ if any Percentage of the amount of discount taken over discount
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how each account compares to the total Sales for each year. When looking at the figures you can automatically see differences in amounts and can come to a conclusion about what areas to look at more closely. By applying the analysis technique for review of the income statement we have detected some areas of concern that need further analysis. Cost of goods sold shows an increase of 5%‚ 8% and 2% for years 2004‚ 2005 and 2006 compared to 2002 and 2003 respectively. The inventory account saw increase
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retail sales will increase the net sales even more. This could give the business a competitive advantage in the future. One of the biggest issues I have with this company is the inaccuracy of its projections; especially for the inventory and accounts payable. Inventory from 1998 to 1999 increased by 18.74%; however‚ the projection for 2000 is only for a 10.5% increase. If they are expanding to accommodate growth then I think the growth rate for inventory should have been higher. Operations Analysis
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A Day in the Life of Brent Dorsey Staff Auditor Professional Pressures 1. The alternatives available to Brent in regards to the audit of payables are: a. Change the audit plan and only pull 20 invoices opposed to the allotted 30. i. Pros – they may be able to come in on or under budget ii. Cons – they could miss something‚ and get in serious trouble for not following procedure b. Work more hours then the allotted time but report only 35 hours “eat time”
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Chapter 1—Introduction to Accounting and Business TRUE/FALSE 1. The federal government is an example of an external user of accounting information. ANS: T PTS: 1 DIF: Moderate OBJ: 01-01 2. An example of a general-purpose financial statement is a report about projected price increases related to transportation costs. ANS: F PTS: 1 DIF: Easy OBJ: 01-01 3. The Canadian Public Accountability Board was created to promote public confidence in the integrity of financial reporting. ANS: T PTS: 1
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