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What are three basic controls of sales and purchases ?
Quality Controls- Savings -Faster order expedite
Purchase Controls:
1- Purchase requisition approved and authorized.
2- Quotations for the competitiveness of prices
3- Physical receipt and checking of goods.
4- Invoices received, date, stamped and input then forward to Finance.
Sales Controls:
1- Bank Guarantee from customer i.e credit limit
2- Credit period (term of payment)
3- Purchase order from Supplier.
Controls are the measures opted to safeguard assets from fraud i.e. Fraudulent Financial Reporting or Miss appropriation of asset
3 Basic Controls are as under:
1- Authorization
2- Segregation of Duties
3- Documentation
