Business Finance Homework Help

Class, the expenditure cycle consists of the following activities:

1. Ordering of materials/supplies/services
2. Receiving items ordered
3. Processing supplier invoices
4. Cash disbursements (to vendors)

In the opening discussion thread, we are analyzing the control issues at the end of the expenditure cycle. But what about at the beginning of the cycle, when supplies are ordered and received? What internal control issues could arise in the purchasing and receiving departments? Please share your thoughts here!