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Syllabus C. Internal Control C3. Tests of control

C3b. Purchases

Syllabus C3b)

Describe control objectives, control procedures, control activities, key controls and tests of controls in relation to:

ii) The purchases system

The control objectives for the purchases cycle are..

As follows:

  1. Purchases made only when needed.

  2. Purchased at a reasonable price.

  3. The goods have satisfactory quality.

  4. The goods delivered match those ordered.

  5. Purchases are recorded accurately.

  6. Payments are valid and paid for in a reasonable timescale.