What Step Should You Suggest For Proper Internal Control Over Purchase?


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Amen Bukhari answered
The system of internal audit means the check will impose on the day to day transaction, whereby the work of one person is proved independently by another person, the object being the prevention or early detection of errors an fraud. Thus internal check includes matter such as the allocation of authorized, the transaction etc. the system of internal check will depend upon the size of the business and the staff available.

Whenever goods are required in a particular department, its head should send the purchases requisition which should show the quantity, price at which they may be purchased, the time by which the good must be supplied to purchases department. All orders should de given on printed and numbered forms and should record in purchases order book which should have carbon copies. All purchase should be made out in triplicate one copy to be sent to the supplier of goods, another copy to be sent to the stores receiving clerk and third copy to be remain with the buying department.

On receipt of goods, the store receiving clerk will write the particulars on the goods received notes in duplicate, after actual inspection, count, weighting of good. One copy of each goods received note would be send to the buying department which would be compare the quantities and qualities are mention therein with their relative invoice. Then check the invoice and any defect in good should be reported. Payment of invoice should be passed by a responsible officer.

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