The Purchasing Expenditure Cycle of a business is focused on the functions that:

  • Acquire property, goods and services
  • Pay for them
  • Classify, summarize and report what was acquired and what was paid

This cycle included the acquisition of, and payment for:

  • Property, plant and equipment
  • Goods (inventories) used directly in the production process or in the providing of services or acquired for resale
  • Supplies and other services.

A significant part of the accounting effort in an expenditure cycle usually is spent classifying the acquisition of resources among various asset and expense accounts. Due to the timing differences between the receipt of resources and the expenditure of cash, accounts payable and various accrued liabilities also are affected directly by the expenditure cycle.

Course Key Concepts: Internal Accounting Controls, SOX 404, ICFR, Internal Control over Financial Reporting, Independent Public Accountants, Internal Auditors, Business Cycles, Treasury, Expenditure, Purchasing, Payroll, Conversion, Revenue.

Learning Objectives
  • Identify and understand the objectives and limitations of Purchasing Expenditure Cycle Accounting Controls.
  • Explore the process for risk assessing Purchasing Expenditure Cycle Accounting Controls.
  • Recognize the importance of Purchasing Expenditure Cycle Accounting Control Goals.
Last updated/reviewed: October 21, 2024

Included In Certifications

This course is included in the following Certification Programs:

7 CoursesAssessing Business Cycle Accounting Controls Certification

  1. A Framework for Assessing Business Cycle Accounting Controls - Introduction
  2. A Framework for Assessing Business Cycle Accounting Controls – Treasury Cycle
  3. A Framework for Assessing Business Cycle Accounting Controls - Expenditure Cycle - Purchasing
  4. A Framework for Assessing Business Cycle Accounting Controls - Expenditure Cycle - Payroll
  5. A Framework for Assessing Business Cycle Accounting Controls - Conversion Cycle
  6. A Framework for Assessing Business Cycle Accounting Controls - Revenue Cycle
  7. A Framework for Assessing Business Cycle Accounting Controls - Financial Reporting Cycle
Prerequisites
Course Complexity: Foundational

No advanced preparation or prerequisites are required for this course. Students should have a basic knowledge of accounting principles and terminology.

Education Provider Information
Company: Illumeo, Inc., 75 East Santa Clara St., Suite 1215, San Jose, CA 95113
Contact: For more information regarding this course, including complaint and cancellation policies, please contact our offices at (408) 400- 3993 or send an e-mail to .
Instructor for this course
  Course Overview CPE
Course Syllabus
INTRODUCTION AND OVERVIEW
  Course Outline1:30
  The Concept of Internal Controls10:12
  The Expenditure Business Cycle Purchasing - Typical Functions and Impacts3:56
  The Expenditure Business Cycle Purchasing - Control Goals 1 and 26:18
  Expenditure Cycle Purchasing - Goal 3 to 710:54
  Expenditure Cycle Purchasing - Goal 8 to 119:46
  Expenditure Cycle Purchasing - Goal 12 to 158:46
  Conclusion0:24
CONTINUOUS PLAY
  A Framework for Assessing Business Cycle Accounting Controls - Expenditure Cycle - Purchasing51:46
SUPPORTING MATERIAL
  Slides: A Framework for Assessing Business Cycle Accounting Controls - Expenditure Cycle - PurchasingPDF
  A Framework for Assessing Business Cycle Accounting Controls - Expenditure Cycle - Purchasing Glossary/ IndexPDF
REVIEW AND TEST
  REVIEW QUESTIONSquiz
 FINAL EXAMexam