Many companies use the computer to generate purchase orders. Who is responsible for authorizing a...
Question:
Many companies use the computer to generate purchase orders. Who is responsible for authorizing a purchase when the computer generates the purchase order? How does the responsible individual ensure that computer-generated orders are correct and are generated only for purchases that should be made? Explain how an automated matching process works with the processing and payment of accounts payable. What controls need to be implemented in the automated matching process to ensure that only authorized payments are made for goods and services actually received, and that payments are made at the authorized prices?
Information Systems in Accounting
With the numerous means in which a business can both receive and pay funds, companies have adopted up-to-date information systems to ensure the accuracy of all financial related matters. However, to ensure that the amounts represented are accurate, internal controls need to be put in place to ensure that these transactions are recorded correctly; if not, there is the possibility of the misappropriation of funds.
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What Is an Information System?
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Chapter 1 / Lesson 1
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Information systems are a key part of businesses and integrate technology and human resources to achieve organizational goals. Explore what is an information system and examine the three main components of an information system, including technology, people, and process.
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