Internal control questionnaire doubts..urgent sir!!!

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Rajesh (Querist)
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25 August 2012 Respected Experts,
I read through the internal control questionnaire issued by ICAI in order to ensure that the internal controls in the organisation is good or needs to be improved further. I am not able to understand the following questions , it will be a great help for me if the experts are able to guide me in this issue.
(Given under the heading of Purchases,Receipt of Goods and Payment of Goods)
1.Are purchase orders pre-numbered and strict control exercised over unused forms?
a)Why the purchase orders should be pre-numbered?
b)Why there should be strict control over unused forms?
2.Is a list of pending purchase orders complied by the Purchase Department atleast once every quarter ?
a) In what circumstances pending purchase orders has to be made?
Thanks & Regards,
Rajesh.

ACMA Obulirajan R

ACMA Obulirajan R (Expert)
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25 August 2012 1.a, PO should be pre numbered as it should to keep a proper control to avoid mishandling
1.b, unused forms can be misused by anybody by raising PO without the knowledge of the company and can loot money etc.,
2.a, pending PO list should be prepared to know the future payout and also to reconcile the material received vs payment pending.. even many other instance as per the company..

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