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Purchase and Payment Cycle - Coggle Diagram
Purchase and Payment Cycle
Functions in the cycle
Receiving of goods
The goods received note
Details of goods received
Treatment of damaged goods
Reciept of goods
Recording of Goods
Copy of the purchsing order
Copy of the Goods recieved niote
Delivery note from supklier
Supplier invoice
Goods returned
Disputed Invoices
Recording ourchases
Invoices received
Purchases Journal
Credit Notes
Ordering of goods
Supplier price lists
List of approved suppliers
Requisitions
Purchase Orders
Controls Objectives
Accuracy
Recording
Completeness
Classification
Authorisation
Cut off
Occurrence/Validity
Documents in the cycle
Test of Controls
Substantive procedures
Timing
Extent of testing
Nature
Internal Controls
Explanations of possible weaknesses and risks
Failure to implement internal controls towards the purchase and payment cycle of a company
Payments to creditors/payables function
Cheques
Bank Statements
Remittance advices
Cash payments journal
Controls that need to be in place for payments to creditors
Drawing and signing of cheques
Recording of payments
Controls over cheque forms
Purchasing and Payments cycle
Substantive testing of transactions in this cycle
Purchases and Payments
Cut-off
Classification
Accuracy
Completeness
Occurence
Additional Notes