Refer to the system flowchart in the figure labeled Problem 12.

Required

a). Describe the control weaknesses depicted in the system flowchart.

b). Discuss the risks associated with the control weaknesses in identified (a) above.

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Transcribed Image Text:

Purchases Department Inventory Records Identify Items and Select Vendor PO PO Vendor Packing Slip PROBLEM 4: SYSTEM FLOWCHART ANALYSIS Receiving Department Packing Slip Prepare Receiving report Rec Reprt Reconcile documents and set up Liability Rec Reprt Invoice Account Payable Department Vendor Invoice Rec Reprt Account Payable Check Vendor On Due date Remove liability and Disburse cash Cash Disbursements Journal Purchases Department Inventory Records Identify Items and Select Vendor PO PO Vendor Packing Slip PROBLEM 4: SYSTEM FLOWCHART ANALYSIS Receiving Department Packing Slip Prepare Receiving report Rec Reprt Reconcile documents and set up Liability Rec Reprt Invoice Account Payable Department Vendor Invoice Rec Reprt Account Payable Check Vendor On Due date Remove liability and Disburse cash Cash Disbursements Journal

Answer rating: 100% (QA)

a In regards to the given flowchart the following control weaknesses can be depicted in the system f... View the full answer