Essay about Purchases: Expenditures Processes and Controls

The internal control structure that can be installed in a new accounting system will help eliminate security risks through mechanics and procedures rather than expensive people ("Accounting - Basic Accounting Components of the Accounting System", 2003).

The ethical principles can be employed to address organizational issues regarding financial ethics, business entities, confidentiality, and decision-making. In which, the organizational ethics are expressed the values of the organization to its employees and stakeholders. The ethical principles would influence by external pressures; as well as the organization’s ethical climate affects employee and management performance (Al-Khatib, Rawwas & Vitell, 2004, p. 1).

Today’s business world presents numerous ethical issues. In today’s world above board/moral ethics in organizations do not often materialize intuitively. Organization must strive to provide employees with a clear understanding of the overall company vision. This will aid employees in practicing the code of ethics, policies and procedures in the workplace. Companies must be unwavering in continuously delivering the uppermost ethics of provision in which customers, applicants and employees are entitled to under fair business practices. One major core value is to uphold responsible and fair business practices.

Enron should have be aware of certain risk factors can lead to unethical behavior. Top management must adhere and emulate the highest ethical standards. In order to stop unethical behavior within an organization, there must be a way employees to discuss their experiences with someone outside the organization. This creates a firewall between employees and management where fear of retribution for their actions does not exist. Addressing unethical behavior quickly and thoroughly is imperative in order to move the company forward (Anand, Ashforth, & Joshi, 2005). An organization should craft a Code of Ethics rooted in reality and with the input of employees, managers, and executives. A zero tolerance attitude and environment must prevail regardless of the cost or consequence if the code of ethics is breached.

“If these controls fail, orders could be processed for fictitious customers, credit could be approved for bad credit risks, and shipping documents could be created for goods that do not exist in the inventory” (Louwers et al., 2007, p. 253).

Dickinson Technologies has a strong control environment to prevent misstatements arising from fraudulent financial reporting. Although there has been a high degree of competition in the entity’s industry, management’s communication of integrity and ethics indicates that employees feel minimal pressure to cut corners or make a “quick buck.” Senior management is highly respected in the organization for its commitment to fairness, further reducing the amount of pressure placed on employees. This behavior also fosters a positive attitude towards the company and high morale in employees. Time constraints do not seem to be a significant issue, allowing management to perform their duties in a timely and efficient manner.

One of the main assets of an organization is the accounts receivable department. It is a vital part of the organization. The information collected from start to the complete of the accounts receivable cycle is important in making sure every step was followed according to the proper procedures made by the organization. Setting up new customers in the database system correctly is important when the credit and billing process takes place. When customer orders are made on the customer’s account proper authorization is needed to safeguard unauthorized orders and the ability to pay for good received (Louwers, Ramsay, Sinason, & Strawser, 2007).

In the contemporary society, unethical and illegitimate activities within organisations are increasing, in order to remain competitive. Examples of violations are disrespectful behavior, non-compliance to company’s policies, unlawful conduct such as misuse of company’s fund and sharing of confidential information. In fact, all these activities cost a lot and organisations have to bear the consequences. Such consequences include tarnished reputation of the company, loss of trust among its stakeholders and unable to recruit the best talents in the industry. Studies have shown that many companies only realize the importance of ethical business practice after their wrongdoings are made known to the public. (Green 1997)

Every organization also has a profession responsibility to conduct business honestly and ethically. Our readings reported, “Experts estimated that U.S. companies lose about $600 billion a year from unethical and criminal behavior” Kinicki and Kreitner (2009). The organization could avoid having ethical issues by meeting the

An invoice is an important business document that a business sends to a client denoting an obligation to pay a stipulated sum for goods and services provided. The tool is highly useful in tracking transactions and expenses, checking inventory and aiding the release of monthly or periodical financial reports. The authenticity and legality of the invoice also means it can be used in the court of law to argue cases involving unpaid debts and for establishing the legitimacy of a debt. The bill is popular with vendors, suppliers, salespeople and various businesses. The invoice contains several fields needed to complete a transaction, these include:

Cash receipts handled by the purchasing department as well as cheques to settle vendor allowances

Nevertheless,an important data I look out for is quality.In a case I come across two items selling at the same price I opt for the market or the shop that sells the quality type.In a situation where two brands such as Toshiba and Samsung products are offered on the market for sale at the same price, I would buy the Samsung product, because of its quality.Information on quality product appeals to me a lot in making my decision

An example of an ecommerce order how network technologies paid an important role in this is, a consumer at home wants a product to buy. The consumer can purchase the product online form an ecommerce sites available to the public. The consumer searches for that certain product on the site, follows through the purchasing process and starts to fill out the information such as address and credit card information. The communication between the computer and the webserver is being facilitated a computer network. The webserver is the central computer and it

* Accounts: The accounts department is responsible for the supply of invoices. They issues certificates for the payments to the subcontractors and on payment received from the client. They handle the cash flow, such as disbursement of cash at site, cash receipt and cash float. They

Purchasing is means purchasing goods and services from some outside agency. The goal of the purchasing department is to organize the supply of materials, spare parts and services or semi-finished products required by the organization in order to produce the required products from some institutions or sources outside the organization (Chand, 2016).