Long, PA, has been engaged to examine and report on the financial statements of Maylou Corporation. During the review phase of the study of Maylou’s system of internal control over purchases, Long was given the following document flowchart for purchases (see Exhibit DC12-1 ).

Identify the procedures relating to purchase requisitions and purchase orders that Long would expect to find if Maylou’s system of internal control over purchases is effective. For example, purchase orders are prepared only after properly considering the time to order and quantity to order. Do not comment on the effectiveness of the flow of documents as presented in the flowchart or on separation ofduties.

  • CreatedJanuary 09, 2015
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