Explain appropriate controls for accounts payable.
Do not just list internal controls explain appropriate controls for accounts payable based on the Apollo Shoes case.
http://www.mhhe.com/business/accounting/louwers2e/apollo.html. Review board meeting minutes for AP.
Appropriate AP controls for Apollo Shoe:
1. Checks may not be made payable to cash
2. Black check stock is kept under lock and key
3. Blank checks are never signed prior to being filled out
4. Voided or spoiled checks are reviewed by Treasurer and then filled in numerical sequence
5. JE date = date of check; End of month JE includes month summarized
6. JE for inventory additions = date of receiving report
7. JE for inventory issues = date of shipment
8. If acquisition of long term assets > capital budget, overages of 10% or more must be approved by treasurer and board of directors (in advance if possible)
9. Salvage values will all presumed to be zero.
10. Buildings = 15 years; ...
Your response includes listing 11 controls currently in place (according to client) and 15 more controls suggested.