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Jikaze Limited operates a computerised purchases system. Invoices and credit notes are posted to the purchases ledger by the purchases department. The computer subsequently raises a...

      

Jikaze Limited operates a computerised purchases system. Invoices and credit notes are posted to
the purchases ledger by the purchases department. The computer subsequently raises a cheque
when the invoice is due for payment.
Required:
Describe five controls that should be in operation over the addition, amendment and deletion or
suppliers in the computer system.

  

Answers


Kavungya
• The standing data file containing suppliers' details should have controls that prevent fraud
through creation of fictitious suppliers.
• All amendments/additions/deletions to the data should be authorized by a responsible
official. A standard form should be used for such purposes.
• The amendment forms should be input in batches (with different types of change in
different batches). sequentially numbered and recorded in a batch control book so that
any gaps in the batch numbers can be investigated. The output produced by the computer
should he checked to input.
• A listing of all such adjustments should automatically be produced by the computer and
reviewed by a responsible official who should also check authorization.
• A listing of suppliers' accounts on which there has been no movement for a specified
period should be produced to allow decisions to be made about possible deletions, thus
ensuring that the standing data is current. The purchase manager might also recommend
account closures on a periodic basis.
• Users should be controlled by use of passwords. This can also be used as a method of
controlling those who can amend data.
Periodic listings of standing data should be produced in order to verify details for
example addresses with-suppliers' documents/invoices/statements.
Kavungya answered the question on May 15, 2019 at 08:34


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