The following list identifies several important control features. For each control, (1) describe its purpose and (2) explain how it could be best implemented in an integrated ERP system.
- Cancellation of the voucher package by the cashier after signing the check.
- Separation of duties of approving invoices for payment and signing checks.
- Prenumbering and periodically accounting for all purchase orders.
- Periodic physical count of inventory.
- Requiring two signatures on checks for large amounts.
- Requiring that a copy of the receiving report be routed through the inventory stores department prior to going to accounts payable.
- Requiring a regular reconciliation of the bank account by someone other than the person responsible for writing checks.
- Maintaining an approved supplier list and checking that all purchase orders are issued only to suppliers on that list