UNIVERSITY OF THE EAST – CALOOCAN CAMPUS
College of Business Administration
SY 2020 – 2021
BSA 3103 – Accounting Information System
NAME
Ocay III, Jovenar G.
CLASS ID:
24
SECTION
BSA 1E
DATE
10/02/2020
:
5
Activity No.:
1
:
The Expenditure Cycle: Purchasing to Cash Disbursements
Short Answer
Answer each question in a clear and organized paragraph. Each paragraph should include a clear
and precise thought that directly addresses the questions. This activity is worth 30 points in total,
based on the rubric for this assessment to score your response found at the bottom of the
assignment.
1.
The threats involved with ordering goods include:
The evident threats that is involved in ordering goods includes; Inaccurate inventory
records, wherein there can be a collusion between two people and create a false
document, ordering unnecessary items, wherein there can be an excessive amount
of items that will not be utilized, purchasing goods at inflated prices, wherein the
cost will not be justified by its benefit, purchasing goods of inferior quality unreliable,
suppliers purchasing from unauthorized suppliers and kickbacks
2.
The third function of the AIS is to provide information useful for decision making.
This means that an organization’s AIS must provide the operational information
needed to perform which expenditure cycle functions.
In order to provide information that is useful for decision making, we must be able
to determine when and how much additional inventory to order in order to optimize
or utilize our space in the warehouse, to select the appropriate suppliers from whom
to order is also important to provide us with great quality and at the great price, to
Verify the accuracy of vendor invoices to be able for us to be fair and avoid material
misstatements, and lastly to monitor cash flow needs to pay outstanding obligations,
to be able to utilize our cash correctly.
List the three possible exceptions to the receiving process