14. Inventory Ordering Alternatives
Refer to Figure 10.2 in the text, which illustrates three
alternative methods of ordering inventory.
Required:
a. Distinguish between a purchase requisition and a
purchase order.
b. Discuss the primary advantage of alternative two
over alternative one. Be specific.
c. Under what circumstances can you envision management
using alternative one rather than alternative
two?
15. Payroll Flowchart Analysis
Discuss the risks depicted by the payroll system flowchart
for Problem 15. Describe the internal control improvements
to the system that are needed to reduce
these risks.