Write 7 pages thesis on the topic auditing. They help to provide sufficient evidence on the effectiveness of any of the existing internal control systems in a business organization. These controls are

Write 7 pages thesis on the topic auditing. They help to provide sufficient evidence on the effectiveness of any of the existing internal control systems in a business organization. These controls are established to ensure that company resources are safeguarded, and there is accountability.

To order for goods, the related document here is the local purchase order (L.P.O) which shows all the requisition orders made and even the purchase journal which may record credit purchases. To receive goods, the related document here is the goods received note (GRN) which shows goods have been received by the business entity. To pay for goods purchased, the related documents are invoices that are written to authorize for payment. Cashbook can also be one of the documents in making payments as it reflects the cash out and cash in.

1. Controls on purchasing, receiving, and cash disbursement. The objective is to monitor how goods are purchased, received, recorded and to see who is responsible for authorizing the same through segregation of duties.

1. Controls on purchase and receiving goods. Examine whether the goods have been authorized to be purchased and by who. This can be done by viewing the local purchase order or the requisition form. They can be obtained from the purchasing and supplies department upon request.

4. Controls on receiving goods. Obtain the purchase ledger book and close examine it with the goods received note and the dispatch note copy to ensure they do agree. Check even on the local purchase order to ensure goods ordered for are the exact goods received.

5. Controls on safety handling of documents. Check on documents that are handled by certain personnel and confirm whether is authorized to handle them and confirm whether that person can prepare checks.

6. Controls on support documents.