The Following Information Is Provided for a Company That Manufactures

Essay

The following information is provided for a company that manufactures bicycles. The factory foreman determines when orders for materials are necessary. The orders are sent to the purchasing department that places orders with the vendors recommended by the factory foreman. When the materials are received, they are immediately delivered to a central storeroom. When invoices are received for the items purchased, they are sent to the accounting department for payment. The accounting department compares the invoices with purchase orders. If the two documents are in agreement, the invoice is approved for payment. The accounting department prepares checks that are signed by the company treasurer.
Recommend three or four improvements in the company's procedures for purchasing and paying for purchases of materials that will provide better internal control.