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Systems and controls

9.2 Purchase system control objectives

Stage Objective: To ensure...

Ordering  All purchases are made with suppliers who have been
checked for quality, reliability and pricing.

 Purchases are only made for a valid business use.

 Orders are placed taking consideration of delivery lead
times to avoid disruption to the business.

Goods received  Only goods ordered by the company are accepted.

 Goods received are recorded promptly

Invoice received  Invoices received relate to goods actually received.

 Invoices received relate to the company.

 Invoices received are correct in terms of quantities, prices,
discounts.

Recording  All purchases and related payables are recorded.

 Purchases are recorded accurately and relate payables
are recorded at an appropriate value.

 Purchases are recorded in the period to which they relate.

 Purchases and payables are recorded in the correct
accounts.

Payment  Payments are only made for goods received.

 Payments are only made once.

 All payments are made on time.

Illustrations and further practice

Now try TYU 2 in Chapter 7

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