Page 228 - F1 - AB Integrated Workbook STUDENT 2018-19

Chapter 14

7.2 Why controls in systems are important

System Purpose Key areas

Purchasing Safeguard ensuring that only goods that have been received
company’s assets are paid for

ensuring goods are in good condition

Efficiency ensuring that the best price is negotiated before
buying

Prevent fraud preventing purchasing staff accepting payments
from suppliers to persuade them to purchase
from that supplier

Prevent errors ensuring that the correct amount is charged to
suppliers

ensuring that all purchases are recorded

Sales Safeguard ensuring goods are only sold to customers who
company’s assets are likely to pay

Efficiency ensuring orders are processed promptly so that
customers do not go elsewhere

Prevent fraud ensuring there is no theft of cash from customers

Prevent errors ensuring the correct quantity of goods is
despatched and invoiced

Wages Safeguard ensuring that cash wages cannot be stolen
company’s assets

Efficiency ensuring that people are only paid for overtime
when necessary (approved)

Prevent fraud ensuring there are no ‘ghost’ employees, people
being paid but who do not work for the company

ensuring employees do not claim pay for hours
they have not worked

222