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Aue 2602 topic 5 summary
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Aue 2602 topic 5 summary
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Lecturer responsible for AUE2602:Topic 5: Acquisitions & Payments Cycle
Ms Nicolene Coetzee
Contact details:
AUE2602@unisa.ac.za
A&P cycle
Functions & Documents
Activity 2 – Study guide page 58
Function Documents
1. Ordering of goods •Requisitions
•Purchase order form
2. Receiving of goods •Supplier delivery note (DN)
•Goods received note (GRN)
3. Recording of purchases •Purchase invoice
•Credit note (CN)
•Creditors statements
4. Payment preparation •Remittance advice
•Cheque requisition
5. Actual payment and recording •Cheque
•Returned paid cheque
•Bank statement
, A&P cycle
Risks & Internal controls
Manual controls – Jackson & Stent p 11/9 – 11/13
Computerised controls – Jackson & Stent p 11/16 – 11/30
When you get a weakness / risk / internal control, ask:
1) What cycle are you in?
2) What function are you in?
3) What is being asked?
(Are we asking for weaknesses, risks or internal controls?)
•As I’ve done below, link each IC to a risk / risks for each of the functions
(J&S p 11/9 – 11/13)
•Risks and Internal controls become more logical and therefore easier to
remember in the exam
•Can be that a question is not limited to 1 function, then you need to
think logically and approach the question the same as described above
(Cycle?, Function? Weakness/Risk/IC?) for each activity provided.
•Remember the “What, on what, why and by whom”
A&P cycle: Risks & ICs
Ordering of goods
(J&S p 11/9)
Risk Internal control
1. Ordering of incorrect or 1. The order clerk should not place an
unnecessary goods order without an authorised requisition
could result in liquidity 1.1 The order should be cross
problems and wastage referenced to requisition
1.2 The stores personnel should
confirm that goods are really needed
2.2 Before order is placed, a senior
buyer should review order for quantity
and nature of goods being ordered
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