Answer the following questions from the textbook, Accounting Information Systems by James A. Hall...

Question

Answer the following questions from the textbook, Accounting Information Systems by James A. Hall (9th Edition), in your own words (if you include quotes, follow-up with your own words) and provide a unique example to support your response:

Chapter 5 Discussion Questions: 3, 5, 7

Note: When responding to the Discussion Questions:

1. Include a 2-3 sentence answer for each question.

2. Hit enter twice and type "EXAMPLE:"

3. Provide an example from your place of business, home life, the news, or an example you found on the internet.

Question 3

Discuss the importance of supervision controls in the receiving department and the reasons behind blind fields on the receiving report.

Question 5

Discuss the following statement: even in advanced technology systems, the AP clerk must perform a three-way match to approve all vendor invoices for payment.

Question 7

Discuss the objective of eliminating the receiving function. What accounting/audit problems need to be resolved?

1 Page

Robert · Accepted Answer

Answer 3.  
Supervision controls are viewed as crucial compensating controls in the receiving department as 
they reduce the following risks in the expenditure cycle 
(i) Risk of theft and pilferage of assets 
(ii) Risk of damaged items and incomplete orders. 
Blind fields on the receiving report forces the receiving clerk to count and inspect the orders 
so received. Otherwise the receiving clerk may not cross verify the quantities and the errors 
or frauds may remain unnoticed. Fabricated purchase order reports can be very harmful as it 
will fabricate the income statements as well as balance sheets. 
EXAMPLE  
The shopkeeper supplies eggs to various households and sends his helper with a blind field in 
receiving report. The households get the eggs and fill in the quantity column and put their 
signature.

Answer the following questions from the textbook, Accounting Information Systems by James A. Hall (9th Edition) , in your own words (if you include quotes, follow-up with your own words) and provide a...

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