Accounting Information System I - Group S by SHARIFAH MILDA BINTI AMIRUL -

Dear all students;

sma6 — 2017-11-05 21:20:46 UTC

You are required to:
1. Write down your name and your student's matrix number for record of your attendance.
2. Make a useful notes on the following:
(a) Expenditure Cycle -Part II (Purchase of Assets)
(b) prosess and procedures for assets procurement.
(c) control/threats in assets procuments
(d) Differences between puchase of materials and assets procuments.

Please be noted that this Padlet is only opened until Wednesday 8th November 2017.

LIM TZE WANG BB15110347

tzewanglim — 2017-11-06 02:14:17 UTC

1) Expenditure Cycle -Part II (Purchase of Assets)
- purchase of assets is the company using available resource to purchase the assets.
-The process will involve a lot document, data operating in the expenditure assets.
-the assets normally obtain by the company is vehicle, machine, office equipment.

2) Process and procedures for assets procurement.
a)Order Asset
- The company will refer to the database to check the asset period (either need to renew or replace ) and available supplier. Besides that, the management will discuss with all department regarding purchase the new asset. if get the approval from each department, the procurement department will make the order to the supplier.
B)Arrival of Asset
- The warehouse department will receive the asset from the supplier, staff from warehouse department will crosscheck the packing slip, invoice, and purchase order make by the company either is correct or not. The staff warehouse will accept the asset after the quantity is match with the purchase order. Staff in warehouse department will send the document to the accountant for recording and make the payment for the asset.

3) control/threats in assets procuments
A)Segregation of Duty
- The person who receive the assets is same with the person who verify and update the product(Threat)
-the person who receive asset and person who verify and update the assets should be different person. (Control)
B)Independent Verification
- for the purchase order, staff who perform multi task for the purchase order and update the purchase order to accounting department.(Threat)
-Any transaction must involve at-least 2 person in-charge to ensure the verification in procurement assets. (Control)

4) Differences between puchase of materials and assets procurement
-purchase of materials is the input of product. it will be low cost if compare to the assets. the input will convert to the finish good by the processing or operation.
-Assets procurement is the company make the purchase asset to support the operating company in order the material products become more quality of products.

EIRNAH NUR AMIRA BINTI AMIR BB15110192

eirnahniena — 2017-11-06 03:10:44 UTC

NADIATUL REHAN BINTI ABDULLADIN (BB15110440)

bb15110440 — 2017-11-06 03:11:46 UTC

I attached my notes in Microsoft word. Thank you :)

IFZAATUL AZRHA BINTI ABD LAT

Ifzaatul — 2017-11-06 03:12:39 UTC

TAN SIOK HUI BB15110739

siokhui1994 — 2017-11-06 03:37:38 UTC

ANUAR BIN SAMAD BB15110822

nuar071612 — 2017-11-06 03:41:53 UTC

KUAN WAI SHIEN BB15160923

shien_1020 — 2017-11-06 07:48:32 UTC

LAU POH LENG BB15110320

pohleng0608 — 2017-11-06 08:41:16 UTC

NOR SYUHADA BINTI ROCKY BB15110485

syuhadarocky93 — 2017-11-06 10:29:31 UTC

LAILA NAJWA BINTI SHAHARUDDIN BB15110317

lailanajwa94 — 2017-11-06 12:43:19 UTC

NURFATIN AFIFAH BINTI ABDUL AZIZ BB15110558

nurfatinafifahabdulaziz — 2017-11-06 13:07:31 UTC

GOH AN NIE BB15110237

anni3_96 — 2017-11-06 14:08:21 UTC

SIFLE JOHNY (BB15160925)

siflejohny — 2017-11-06 14:13:44 UTC

NORATNA BINTI AWANG ASAL (BB15110493)

2017-11-06 14:15:58 UTC

LER WEN CHEE BB15160924

wenchee95 — 2017-11-07 01:11:24 UTC

Siti Noorazura Binti Ramsa (BB15110691)

bb15110691 — 2017-11-07 01:22:30 UTC

Siti Aisyah Fatiha Binti Mohamad Kamir (BB15110681)

aisyahfatiha96 — 2017-11-07 04:47:22 UTC

HANISAH BT KAMARUDDIN (BB15110242)

anisnysa21 — 2017-11-07 05:37:39 UTC

Chorlelina Labi (BB15110153)

Chorlelina — 2017-11-07 06:09:50 UTC

Nurulizatti binti Halim (BB14110555)

nurulizatti95 — 2017-11-07 06:33:00 UTC

Siti Fazwalina Binti Wahimin (BB15110684

2017-11-07 06:41:05 UTC

Nur Azlinnie Ruslan (BB15110524

2017-11-07 07:14:27 UTC

NURUL AZIRA BINTI MACHAMUD BB15110584

aziramachamud96 — 2017-11-07 07:28:51 UTC

Expenditure Cycle

SUHAILAH BINTI JALIL (BB15110725

suhailahjalil1493 — 2017-11-07 08:28:18 UTC

NG SYIE NIE (BB14110434

2017-11-07 09:01:00 UTC

MARIYANI BINTI SIDIRMAN (BB15110371)

mariyanisidirman — 2017-11-07 09:25:45 UTC

ROSITA BINTI DARWIS (BB15110639

bb15110639 — 2017-11-07 10:47:27 UTC

ROSITA BINTI DARWIS (BB15110639)

bb15110639 — 2017-11-07 10:47:28 UTC

NASRIAH BINTI NASIR

nasriahbtnasir — 2017-11-07 11:03:22 UTC

(BB15110444)

Dayang Nursyahirah binti Latip (BB15110175)

syahirahirah71732 — 2017-11-07 11:12:53 UTC

Dayang Nursyahirah binti Latip (BB15110175

syahirahirah71732 — 2017-11-07 11:15:51 UTC

2. A) If want to purchase assets, they need to use expenditure cycle. Firstly, they need to compare the price and the suppliers. After that, they need to send the orders to suppliers. Next, they will receive merchandise from suppliers. Then, the next step is processing invoice which is review and approve invoices from suppliers. Lastly is cash disbursement. It is a process to make payments to suppliers.
B) Process and procedures for assets procuments
1. Plan procurements: this process will involve creating procurement documents.
2. Conduct Procurements: this process will involve getting the procurement documents to the sellers, answer seller’s queries, having them prepare responses and review the responses to select the seller.
3. Administer Procurements: in this process, managing the relationship between the buyer and seller, then make sure both parties perform as required by the contract is termed.
4. Close procurements: Procurement is close when a contract is terminated before the work s completed or when a contract is completed.
C) The threats are:
1. Product costs will be higher than anticipated
2. Products will not be profitable or able to compete in the market at a reasonable price.
3. 3. Plans and schedules for goods to be received are not communicated to the receiving department.
Controls:
1. The requesting department is required to prepare the purchase requisition for all materials and supplies purchased.
2. An approved vendor master file used by the system for verifying approved vendors during purchase order creation.
3. Computer system input screens and routines are used to generate purchase order documents or transactions.
D) Procurement involves the process of selecting vendors, establishing payment terms, strategic vetting, selection, the negotiation of contracts and actual purchasing of goods. Purchasing is s subset of procurement. The purchasing generally refers simply to buying goods or services.

SHARMILADEVI A/P ARUMUGAM BB15110667

sharmiladevi468 — 2017-11-07 13:51:52 UTC

Expenditure

JEEVANRAJ A/L RAJA BB15110270

jeevan364 — 2017-11-07 14:22:49 UTC

a) Expenditure cycle – Part II (Purchase of assets)
Expenditure cycle is a recurring set of business activities and related information processing operations associated with the purchase of a payment for goods and services. In expenditure cycle, there have a primary external exchange like suppliers or vendors. The company will get the information about the need to purchase good and materials flow to the expenditures cycle from the revenue and for production cycle, inventory control, and various department. Normally business needs materials and supplies to produce goods and services. An individual requester or company agent will do research for the products that they need and compares pricing and determine the night product or services.
b) Process and procedures for assets procurement
The process in assets procurement are begin with plan procurements, conduct procurements, administer procurements, and end with close procurements.
This process is to obtain a seller at most reasonable prices. This process may involve waiting time for the seller to three months for this type of procurement. The process take time about one to three months. The project manager need to be involve for the entire process of procurement management. The project manager also needs to plan for the amount of time procurements take.
c) Control / threats in assets procurements
To control the assets procurements, the company needs to analysing the spend patterns with the company suppliers and its can help to ensure that the company are spending what they think they are. The reason for the problem can be explained if the costs go over an agreed limit. In the same time, the control will ensure the risk of procurement fraud is acknowledged on your company risk register, and there is a risk owner who has overall responsibility in the organisation.
d) Differences between purchase of materials and assets procurements
The differences between purchase of materials and assets procurements in, the purchase of materials are more to indirect where the act of purchasing services or suppliers required to keep the day to day business bottom line. This includes repairing equipment, buying office suppliers or acquiring services. Without indirect procurements function, business would not be able to operate in an effective fashion.
Besides that, the assets procurements is more to direct procurements. The act of acquiring raw material and goods for production. Generally done in large quantities and frequently will be done in a company expenditure but it necessary for the key business

NURUL HIDAYAH BINTI ABDUL SUHUD BB15110588

nurulhidayah160596 — 2017-11-07 22:00:18 UTC

AMALINA BINTI NORAZAM (BB15110086

amalinanorazam04 — 2017-11-08 03:25:13 UTC

As attached below

MAZWAN BIN SARIHASAN (BB15110382)

Mazwan — 2017-11-08 06:38:09 UTC

a) Expenditure Cycle is a set of business activities that relates the information of processing operation that includes transaction of purchasing and making payment of goods and services.

b) Process and Procedure for Assets Procurement
-Identify suppliers, compares pricing, and determine right product and services.
-Fill out internal purchase order for approval.
-Make proper order by preparing purchase order and send it to supplier.
-Paying for material either by check or cash.

c) Control/Threat in Assets Procurement
-Inaccurate inventory records in ordering, and to control it using perpetual inventory system.
-Mistake in posting to account payable and requiring detailed receipts for procurement card purchases to control it.

d) Purchase of material is activities that request for quotes for new product, getting vendor information, lead time, pricing, minimum ordering quantity and standard packing quantity.

Assets procurement repeated process of placing purchase order with supplier, getting confirmation for order, and follow up with supplier until on time delivery of material.

Nisha Karmila Binti Umar Sarim (BB17110946

2017-11-08 06:51:33 UTC

a) Purchase of assets
-purchase of asset is a process of acquiring and transfer ownership of an organisations’ assets through an agreement between the buyer and then seller.

b) process and procedure for assets procurement.
-procurement is the process of obtaining new assets at a reasonable price for the company. The procedure include ordering of assets where they identify the needs, receiving the assets, and end with cash disbursement.

c) control/threats in assets procurement.

i) ordering threats - inaccurate inventory records and purchasing from unauthorised suppliers.
ordering controls - use bar code or RFID tags and periodic physical counts of inventory, review and purchase only from approved/authorised suppliers.
ii) receiving threats -accepting unordered items and theft of inventory
receiving controls - require receiving employees to sign receiving report and restriction physical access to inventory.

d) differences between purchase of materials and assets procurements.

purchase of material
-mainly used in wholesale environment (external customer).
-activity(acquring) tends to focus more on price than value
-take care of buying material, cost control, find good vendor/suppliers and negotiating price, follow purchase procedure and communicates with accounting/finance department and procurement to make sure prices are correct.

procurement
-mainly used in production environment (internal customer).
-activity(acquiring) tends to focus more on the quality necessary to meet users’ requirements.
-responsible for bid evaluation tender process and codt control, monitor purchasing activities and communicate between various administrations departments.

NOR ASLINDA BINTI RUSLAN (BB15110474

aisyahfatiha96 — 2017-11-08 08:42:12 UTC

NOOR FARHANOM BINTI NAZARUDIN BB15110467

anomnazarudin96 — 2017-11-08 12:28:17 UTC

hidayahkhaironi — 2017-11-08 15:02:50 UTC

NURUL HIDAYAH BINTI KHAIRONI BB15110589