Internal Controls Transaction Cycles A11-12b

Some information processing controls over the expenditure/disbursement cycle.

1. Transactions should be adequately supported, and records should be maintained.
2. Use prenumbered numbers, including those for purchase orders and checks.
3. Cancel supplier invoices and other supporting documents as paid. Stamping document paid avoids duplications.
4. Two signature should be required on checks. May differ in some small entities.
5. Signature plates should be physically secured.