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Question : 135. At Winsted Company the following procedures used to enter purchase

135. At Winsted Company the following procedures are used to enter purchase requisitions (PRs).

Clerks in the purchasing department receive purchase requisitions (PRs) from departments throughout Winsted's home office. The PRs are handwritten on forms specially designed for this purpose. The clerks enter these into preformatted screens on PCs that are connected to the central computer. After each PR is recorded on the purchase requisition event data store the computer informs the clerk that the PR has been recorded. Once recorded the computer forwards the PRs to appropriate managers who can approve the PRs online. Approving individuals enter their approvals (or denials). PRs that are not approved are sent back to the purchasing clerks for corrective action.

Below is the annotated systems flowchart and partially completed control matrix for this process.

Control Goals of the Winsted Purchase Requisition Data Entry Process

Control Goals of the Operations Process

Control Goals of the Information
Process

Ensure
effectiveness
of operations:

Ensure
efficient
employment
of resources
(people,
computers)

Ensure
security of
resources
(inventory,
purchase
order
master
data)

For the purchase
order (i.e.,
purchase
requisitions)
inputs, ensure:

For the
purchase
order master
data, ensure:

Recommended control plans

A

IV

IC

IA

UC

UA

Present Controls


P-1: Document design.


P-2: Preformatted screens.


P-3: Confirm input acceptance.


P-4: Electronic approvals.


P-5: Procedures for rejected inputs.

Possible effectiveness goals include the following:

A - Ensure timely input of purchase requisition data.

See below for a complete explanation of control plans and cell entries.

IV = input validity
IC = input completeness
IA = input accuracy
UC = update completeness
UA = update accuracy


Required:
Complete the control matrix by entering the control plan numbers (P-1, P-2, etc.) in the appropriate cells in the control matrix to indicate to which control goal(s) each control plan is directed. Below the matrix describe how each control plan achieves each control goal that you have indicated on the matrix.

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