The flowchart in Figure was prepared by a CPA to portray the raw materials purchasing function of one of her clients, a medium- sized manufacturing company, from preparing initial documents through vouching for invoices for payment in accounts payable. The flowchart was a portion of the work performed on the audit engagement to evaluate internal control.

Required
Identify and explain the systems and control weaknesses evident from the flowchart. Include the internal control weaknesses resulting from activities performed or not performed. All documents arepre-numbered.

Transcribed Image Text:

Flowchert of Rew Materials Purchesing Function Pepared by Manutsotning Deuoion Acoournts Payable ControlersDeision Storee Purchssig Olfice Receiving Room Puchne.t Purehase Ode Prchaus Onder Order Purche Puchasa Oder Explanatory Notes Repor T port 囗 F-Prepae voucher ataroom- for payment Oocuments