Академический Документы
Профессиональный Документы
Культура Документы
HAPTER 11
Romney/Steinbart
1 of 122
INTRODUCTION
Questions to be addressed in this chapter include:
What are the basic business activities and data processing operations that are performed in the expenditure cycle? What decisions need to be made in the expenditure cycle, and what information is needed to make these decisions? What are the major threats in the expenditure cycle and the controls related to those threats?
2008 Prentice Hall Business Publishing Accounting Information Systems, 11/e Romney/Steinbart 2 of 122
INTRODUCTION
The primary external exchange of information is with suppliers (vendors). Information flows to the expenditure cycle from other cycles, e.g.:
The revenue cycle, production cycle, inventory control, and various departments provide information about the need to purchase goods and materials.
Romney/Steinbart
4 of 122
Romney/Steinbart
5 of 122
One of the key factors affecting this process is the inventory control method to be used.
Romney/Steinbart
6 of 122
Romney/Steinbart
7 of 122
The EOQ formula is also used to calculate reorder point, i.e., the inventory level at which a new order should be placed. Other, more recent approaches try to minimize or eliminate the amount of inventory carried.
2008 Prentice Hall Business Publishing Accounting Information Systems, 11/e Romney/Steinbart 8 of 122
Romney/Steinbart
9 of 122
Romney/Steinbart
10 of 122
Advanced inventory control systems automatically initiate purchase requests when quantity falls below the reorder point.
Romney/Steinbart
11 of 122
Most of the detail on the suppliers and the items purchased can be pulled from the supplier and inventory master files.
2008 Prentice Hall Business Publishing Accounting Information Systems, 11/e Romney/Steinbart 12 of 122
Romney/Steinbart
13 of 122
Romney/Steinbart
14 of 122
Romney/Steinbart
17 of 122
The receipt of goods must be communicated to the inventory control function to update inventory records.
2008 Prentice Hall Business Publishing Accounting Information Systems, 11/e Romney/Steinbart 18 of 122
Romney/Steinbart
19 of 122
Romney/Steinbart
21 of 122
Romney/Steinbart
22 of 122
Romney/Steinbart
23 of 122
Romney/Steinbart
24 of 122
Romney/Steinbart
25 of 122
Romney/Steinbart
28 of 122
The disbursement voucher effectively shows which accounts will be debited and credited, along with the account numbers.
Romney/Steinbart
29 of 122
Romney/Steinbart
31 of 122
Romney/Steinbart
32 of 122
In the following sections, well discuss the threats that may arise in the three major steps of the expenditure cycle, as well as general threats, EDI-related threats, and threats related to purchases of services.
2008 Prentice Hall Business Publishing Accounting Information Systems, 11/e Romney/Steinbart 36 of 122
You can click on any of the threats below to get more information on:
The types of problems posed by each threat THREATS IN ORDERING GOODS
The controls that can mitigate the threats.
Romney/Steinbart
51 of 122
THREATS IN APPROVING AND The types of problems posed by each threat. The controls that can mitigate the threats. PAYING VENDOR INVOICES
You can click on any of the threats below to get more information on:
SUMMARY
Youve learned about the basic business activities and data processing operations that are performed in the expenditure cycle, including:
Ordering goods, supplies, and services Receiving and storing them Approving invoices and paying for them
Youve learned how IT can improve the efficiency and effectiveness of these processes.
2008 Prentice Hall Business Publishing Accounting Information Systems, 11/e Romney/Steinbart 70 of 122
SUMMARY
Youve learned about decisions that need to be made in the expenditure cycle and what information is required to make these decisions. Youve also learned about the major threats that present themselves in the expenditure cycle and the controls that can mitigate those threats.
Romney/Steinbart
71 of 122