Page 109 - Audit Day 3 - Class Slides
P. 109
THE ACQUISITIONS AND PAYMENTS CYCLE
RISKS WITHIN THE ORDERING OF GOODS
• Orders may be placed for incorrect or
unnecessary goods leading to wastage and
liquidity challenges.
• Orders may not be placed for unauthorised goods
resulting in losses through fraud.
• Requisitions may not be acted upon or orders may
not be placed timeously or at all.
• Ordering of inferior quality goods
• Paying unnecessarily high prices for goods and/
services
• Order forms may be misused - placing orders for
private purchases.
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