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Purchasing Procedure of Platinum - Assignment

   

Added on  2021-06-17

11 Pages2276 Words51 Views
Running head: PURCHASING PROCEDURE OF PLATINUMPURCHASING PROCEDURE OF PLATINUMName of the StudentName of the UniversityAuthor Note

PURCHASING PROCEDURE OF PLATINUM1Executive Summary:Information system (IS) has emerged as one of the most prominent choice for theorganisations to sustain themselves while enjoying a competitive advantage. The discussedreport has discussed the purchase process of special orders in Platinum Manufacturing Groupand it has been identified that the organisation is suffering from some serious internal controlweaknesses that can prove to adversely crucial in long run. The identified weaknesses arerelated to the documentation of the purchase process and the vagueness of its purchaseprocess. Hence, the paper has recommended potential measures to mitigate the identifiedinternal control weakness. The recommendations are most based on adoption of the ITservices to enhance the organisational operations while mitigating the internal controlchallenges. To conclude, the paper, it had been justified that the suggested system will becompatible with the new systems, if the discussed organisation plans to renovate the existingIT infrastructure of the organisation.

PURCHASING PROCEDURE OF PLATINUM2Table of ContentsExpenditure process of Special Order........................................................................................3Level 0 Data Flow Diagram.......................................................................................................4Internal Control Weakness:........................................................................................................4Identification..........................................................................................................................5Impact.....................................................................................................................................5Recommendations..................................................................................................................6Flexibility...............................................................................................................................8References:.................................................................................................................................9

PURCHASING PROCEDURE OF PLATINUM3Expenditure process of Special Order The expenditure process for the special order of the Platinum manufacturing iscompleted in multiple steps the first being the head of the department sending a purchasingrequisition to the purchase department. In the next step one of the five buyers out of the fiveemployed by the organisation verifies the order to ensure that the request is being made bythe head of the department. Post the verification the buyer selects the most suitable buyer forthe operation and asks for a price quotation while placing a verbal order. A pre-numberedpurchase order is then processed and sent to the head, accounts and other departments. Thereceiving department on receiving the purchase order verifies that the received equipment andthe placed order are similar or not. After the verification is successful they forward to therelevant departments. The accounts department on receiving the purchase order, verifies thepurchase order with the invoice received by the vendor and after it is justified a payable isforwarded to the treasurer. The checks below $10,000 are signed through machine whileabove them are signed by the cashier and machine as well before completing the purchaseprocess and paying the vendor.

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