ACCT 402 SEU Accounting Information System Purchasing at Inflated Prices Discussion

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Business Finance

ACCT 402

Saudi electronic university

ACCT

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answer Q1 + Q3 question 2 only paraphrasing

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College of Administrative and Financial Sciences Assignment 3 Deadline: (End of Week 12) 21 /11/ 2020 @ 23:59 Course Name: Student’s Name: Accounting Information System Course Code: ACCT 402 Student’s ID Number: Semester: I CRN: Academic Year: 1441/1442 H For Instructor’s Use only Instructor’s Name: Students’ Grade: …… /5 Level of Marks: High/Middle/Low Instructions – PLEASE READ THEM CAREFULLY • The Assignment must be submitted on Blackboard (WORD format only) via allocated folder. • Assignments submitted through email will not be accepted. • Students are advised to make their work clear and well presented, marks may be reduced for poor presentation. This includes filling your information on the cover page. • Students must mention question number clearly in their answer. • Late submission will NOT be accepted. • Avoid plagiarism, the work should be in your own words, copying from students or other resources without proper referencing will result in ZERO marks. No exceptions. • All answered must be typed using Times New Roman (size 12, double-spaced) font. No pictures containing text will be accepted and will be considered plagiarism). • Submissions without this cover page will NOT be accepted. ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ 1. Under the expenditure cycle ordering materials, supplies and services are the first activity. Explain the following ordering threats with suitable example with each of these. (1.5 Marks) a) Purchasing at inflated prices In the period of the Coronavirus pandemic, the government imposed wearing masks, which led to an increase in demand for masks and forced consumers to buy the masks at higher prices than before. b) Unreliable Suppliers ???? c) Kickbacks ???? 2. There may be several production operations threats. State any three production operations threats and also suggest some measures to control these threats. (1.5 Marks) 1- Theft of inventory Theft makes inventory records inaccurate, which can lead to problems in filling customer orders. there are several control procedures that can reduce the risk of inventory theft. First, inventory should be kept in a secure location to which physical access is restricted Second, all inventory transfers within the company should be documented. Inventory should be released to shipping employees based only on approved sales orders Both warehouse and shipping employees should sign the document accompany- ing the goods (or make the appropriate acknowledgment of the transfer online) at the time the goods are transferred from inventory to shipping. This procedure facilitates tracking the cause of any inventory shortages, and the accountability provided encourages employees to prepare and maintain accurate records. The use of wireless communications technologies and RFID tags can provide real-time tracking of inventory in transit, which may help reduce theft. Finally, recorded amounts of inventory should be periodically reconciled with physical counts of inventory on hand, and the employees responsible for inventory custody should be held accountable for any shortages. 2- Poor performance Poor performance is another threat to production operations. Training is one way to mitigate this threat. Indeed, surveys of manufacturing companies report a direct relationship between time spent on training and overall productivity. It is also important to regularly prepare and review reports on performance in order to identify when additional training is needed. 3- Another threat is that both inventories and fixed assets are subject to lose due to fire or other disasters. Physical safeguards, such as fire suppression systems, are designed to prevent such disasters. However, because preventive controls are never 100% effective, organizations also need to purchase adequate insurance to cover such losses and provide for the replacement of those assets. 3. Under the payroll system of an organization we find several components such as HRM Department, Employees, Bank, Government Agencies, Insurance and other companies and various other departments. Take an example of an organization and explain the relationship of these components with reference to Payroll System of that organization. (2 Marks)
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College of Administrative and Financial Sciences

Assignment 3
Deadline: (End of Week 12) 21 /11/ 2020 @ 23:59
Course Name:

Student’s Name:

Accounting Information System
Course Code: ACCT 402

Student’s ID Number:

Semester: I

CRN:
Academic Year: 1441/1442 H

For Instructor’s Use only
Instructor’s Name:
Students’ Grade: …… /5

Level of Marks: High/Middle/Low

Instructions – PLEASE READ THEM CAREFULLY
• The Assignment must be submitted on Blackboard (WORD format only) via
allocated folder.
• Assignments submitted through email will not be accepted.
• Students are advised to make their work clear and well presented, marks may be
reduced for poor presentation. This includes filling your information on the cover
page.
• Students must mention question number clearly in their answer.
• Late submission will NOT be accepted.
• Avoid plagiarism, the work should be in your own words, copying from students
or other resources without proper referencing will result in ZERO marks. No
exceptions.

• All answered must be typed using Times New Roman (size 12, double-spaced)
font. No pictures containing text will be accepted and will be considered
plagiarism).
• Submissions without this cover page will NOT be accepted.

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
1. Under the expenditure cycle ordering materials, supplies and services are the first activity.
Explain the following ordering threats with suitable example with each of these.
(1.5 Marks)

a) Purchasing at inflated prices

Purchasing at inflated prices would decrease the productivity of an element. Envision the
expense of products sold increments because of buying at inflated cost, this would affect
the benefit of the entity.

In the period of the Coronavirus pandemic, the government imposed wearing masks, which
led to an increase in demand for masks and forced consumers to buy the masks at higher
prices than before.

b) Unreliable Suppliers

Unreliable supplier would harm the standing of the entity. In the event that the nature of
crude materials is not of good quality the end result produce would be of bad quality and
consequently this would contort the image of the association in the front of the clients.

c) Kickbacks

Kickbacks are endowments/gifts from providers to buying specialists to impact their
selection of providers. To prevent kickbacks, organizations ought to restrict buying
specialists from tolerating any endowments/gifts from potential or existing providers.
These approaches ought to apply not exclusively to blessings of unmistakable products,
yet additionally to administrations.

2. There may be several production operations threats. State any three production operations
threats and also suggest some measures to control these threats. (1.5 Marks)

1- Theft of inventory

Theft makes stock records mistaken, which can prompt issues in dispatching client
orders. there are a few control methodologies that can decrease the danger of stock burglary. To
begin with, stock ought to be kept in a safe area to which actual access is limited.
Second, all stock exchanges inside the organization ought to be reported. Stock ought to be
delivered to delivery representatives dependent on affirmed deals orders Both distribution center
and transportation workers should sign the archive going with the items (or make the fitting
affirmation of the exchange on the web) at the time the products are moved from stock to
delivery. This technique encourages following the clarification for any stock deficiencies, and
consequently the responsibility gave urges workers to put together and keep up exact records.
The utilization of wireless communication innovations and RFID labels can give ongoing
following of stock on the way, which may help decrease robbery. At long last, recorded
measures of stock ought to be intermittently accommodated with actual checks of stock close by,

and the workers answerable for stock authority ought t...


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