Purchase requisition:Sent by inventory control to the purchasing department that says who the person is and what they’re buyingInternal request to acquire goods and servicesRequest for quotation:Invite suppliers into bidding process to bid on specific products or servicesReceiving report/ acceptance report:Receiving- document such as PO that tells the quantity received that is used to record merchandise receipts (goods)Acceptance- documents services received to formally acknowledge the satisfactory completion of a service contractPacking slip:Accompanies the purchase inventory from the vendor and identifies the shipmentDefinition of services:Work performed by outside vendors, including contractors, catering firms, towel and linen service providers, consultants, auditorsWhat are the information flows of the purchasing process?1) purchase requisition sent from inventory control to purchasing2) PO sent to vendor, inventory control, receiving, and accounts payable3) packing slip with goods received from vendor4) stock notice with goods sent to warehouse5) notice of goods receipt sent to accounts payable, general ledger and purchasingWhat triggers the “receive goods and services” part of the purchasing process?Vendor packing slipWhat are the outputs of the purchasing process?Purchase orderPurchase order inventory notification sent to the inventory systemReceiving reportNOT VENDOR INVOICEWho authorizes the purchase requisition?Requisitioning department supervisorInventory reorder point techniques:ABC analysis- technique for ranking items in a group based on the output of the items, can be used to categorize inventory items according to their importanceReorder point analysis (ROP)- each item is assignment a reorder point based on its sales rateEOQ models- order quantity based on costs of ordering and carrying inventoryControl plan:Blind copy of PO to receiving- a copy of a document on which certain data is blanked out so that persons receiving that copy will not have access to those dataCorporate codes of conduct address what?Issues related to the purchasing function, such as kickbacks, bribes, conflicts of interest, and the likeBenefits of supply chain management:Lower costs to customerHigher availability of productHigher response to customer requestsReduced inventories along supply chainImproved buyer-seller relationshipsSmooth shipping and receivingReduced item costIncreased customer ordersReduced product defectsPotential problems with supply chain management:Data not collected or not shared across functional boundariesInformation is not shared between supply chain partnersInaccurate data negatively affects the entire chainOver-reliance on demand forecasting that may be inaccurateCompeting marketing and sales objectives can lead to unrealistic forecastsThree-way matches:Purchase orderReceiving documentVendor invoiceBubbles in the logical DFD include:Establish payableMake paymentIn the AP/CD process, “establish payable” is triggered by what?Receipt of vendor invoiceIn the AP/CD process, “make payment” is triggered by what?AP master data/ payment due date informationThe “vendor invoice” is sent by the vendor to which process?Establish payableThe data flows of the AP/CD process include what?Invoice received from vendorAccounts payable invoice notice sent to general ledgerApproved voucher (payment request) sent to cashier and general ledgerPayment sent to vendor by cashier, paid voucher returned to accounts payable department, payment notice sent to the general ledgerWho authorizes payments?Accounts payable department- THE TREASURERWhat payments are not typically supported by an invoice?RentFreightPayrollPayroll taxesCorporate income taxesSecurity investmentsRepayment of debt obligations and interestE-payments are settled through ACH network, wire transfer, or debit/credit cardsWhat are the common forms of fraud abuses in the AP/CD process?APBogus vendors- segregation of duties, compare vendor data to employee recordsEmbezzle vendor refunds- segregation of dutiesCDCheck forgery- segregation of dutiesFraudulent wire transfers- firewalls, anti-virus softwareWhat are the control plans for the AP/CD process?Independent validation of vendor invoicesMatch invoice, purchase order, and receiving reportIndependent authorization to make paymentReconcile bank accountWhat control plans of the AP/CD process address the goal of input completeness?Tickler file of payments dueAgreement of run-to-run totals (reconcile input-output batch totals)Digital signaturesThe availability of cheap color printers has caused an escalation in check forgery (cash disbursements fraud).ERP systems facilitate the AP/CD process by linking:The purchase orderThe receiving reportThe invoiceThe cash disbursementHuman capital management manages how people are hired, trained, assignment, motivated and retainedWhat do HR self-service systems allow employees to do?Systems that allow employees to access personal as well as business related information and functionsWhat data is maintained in the skills inventory data?The skills inventory data catalogs each employee’s set of relative skillsWhat events are performed by the HR management process?HR management is the interacting structure of people, equipment, activities and controls that support repetitive work routines and decision needs of HR department managersWhat are the benefits of including HR data within the enterprise system?Allows for sharing of common data providing benefits:Creating a single source for obtaining HR informationProviding for faster data accessMinimizing data redundancyEnsuring data integrity and consistencyFacilitating data maintenanceImproving data accuracyWhat data store is updated when employees obtain new training?Skills inventory dataWhat is the data flow that goes to the insurance companies?Payroll contribution noticePayroll reports may be provided to the following:UnionsEmployeesGovernmentFor proper segregation of duties a company should segregate the following duties:HRPayrollAPCashierJob time records provide information for distributing labor charges to jobs, departments, or other accountsGhost employees is an example of a payroll-related fraud involving non-existent employeesExpense reimbursement fraud includes:Overstating expensesSubmitting false receiptsClaiming personal expenses as business expenseSubmitting the same expense multiple timesThe process of reconciling hours consists of comparing total hours of each worker as