SMU Classification: Restricted

ACCT221 AIS
2021-22 S2 – Expenditure Cycle Quick Checks

Q1. What is the first thing that the purchasing clerk will look for before processing the PR?

Requisition By ………………..
Approved By……………………

Q2. Name a control in the PO to ensure the company is buying the ‘right’ things and from the 'right'
vendor.

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Q3. Jack submitted a PR but did not receive any notification from the purchasing dept that it has
placed a PO for the PR. So Jack decided to call the purchasing dept. PO notification to requesting
depts is a control plan to ensure (choose the best option):

Q4. Jack submitted a PR. He noted a discrepancy when he received the PO notification (PO Copy 2)
and alerted the purchasing staff.

PO notification to requesting depts. is a control plan to ensure:

 IV
 IA
 IC

Q5. Fill in the appropriate description for the labels in the given incomplete Level 0 logical DFD of the
order goods process:

(1)

Purchase
Various 1.0 requisition
departments Determine
requirements
(2)

Inventory
management Item details and (3)
process order quantities

PO notification

Various 2.0 (4)

departments PO notification Prepare
purchase order
PO notification
Receiving
department (5) Vendor
PO notification

Accounts payable (6)

departments

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Q6. What would the receiving staff do?

Q7. What would the receiving staff do?

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Q8. What would the receiving staff do if:

Q9. Select the control goals that is(are) achieved by using barcode scanner for 1-1 match of the
vendor packing slip, PO and physical goods. You may choose more than 1 answer.

Efficiency in
Security of
employment of IV IA IC
inventory
resources

Q10. An audit by the Auditor General’s Office found that MOH overpaid contractor by $0.8m for work
on Khoo Teck Puat Hospital. A control plan that could have prevented being overcharged by
the supplier is

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Q11.

A ‘safeguard’ to prevent late payments is

Q12.

Which of the following control plans could ensure the security of cash?

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Suggested Solution

1. PR is appropriately approved. This is to ensure PR is valid and the right things will be purchased.

2. Written approval by manager who has the authority to do so. The manager is ‘forced’ to review
the PO to ensure the order is placed with approved vendors for approved requisitions.

3. IC of the PR

4. IA

5.

(1) PR for
supplies &
services
Purchase
Various 1.0 requisition
departments Determine
requirements
(2) PR for
inventory
Inventory
Item details and (3) Inventory
management
order quantities master
process

PO notification

Various 2.0 (4) Vendor master

departments PO notification Prepare
purchase order
PO notification
Receiving
department (5) PO Vendor
PO notification

Accounts payable (6) PO master

departments

6. Reject delivery as delivery note does not match PO (IV and/or IA problem).

7. Reject delivery as delivery note does not match physical goods (IV and/or IA problem).

8. Reject delivery as delivery note is not valid.

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9.
Efficiency in
Security of
employment of IV IA IC
inventory
resources

Yes Yes Yes Yes

10. 1-1 match of contractor invoice, PO and receiving report

11. Review of unpaid accounts payable tickler file

12. Cheque signing machine

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