Monarchs ruled most European states in the eighteenth centur…
Questions
Mоnаrchs ruled mоst Eurоpeаn stаtes in the eighteenth century.
Review the fоllоwing prоcedures: The purchаsing аgent receives аn inventory status report on his computer terminal from the inventory control application which identifies the items that need to be reordered. The agent selects the suppliers and enters this information into the computer terminal to create a digital purchase order. He then prints and sends a copy of the PO to the supplier. When the goods are received directly into the warehouse, the warehouse manager counts and inspects them. The manager then creates a digital receiving report and updates the inventory subsidiary ledger from the warehouse terminal. A few days later, the supplier sends an invoice to the AP clerk who reconciles it with the digital copy of the receiving report. From her computer terminal, the clerk records the purchase in the purchases journal and records the liability by adding a record to the AP subsidiary ledger and assigning a due date. Each day, the cash disbursement clerk visually searches the AP subsidiary ledger from her terminal for invoices that are due to be paid. The clerk prepares the check and records it in the digital check register. The check is mailed to the vendor, and a check copy is filed. The clerk then closes the liability in the AP subsidiary ledger to mark the liability paid. Required: (5 points)Is this system extremely vulnerable to a fake invoice scheme? If so, who can / should do it and what exposure are he / she exploiting?