Question

The following are five process failures that indicate weaknesses in control.
Process Failures
1. A purchasing agent ordered unneeded inventory items from a supplier company of which he is one of the officers.
2. The vendor shipped goods that were never ordered. These receipts are recorded as received and put in stock.
3. Goods were stolen by storeroom personnel. When the shortage was discovered, the storeroom personnel claimed that the goods had never been delivered to them from the receiving department.
4. An organization seems to regularly run out of inventory for some of its most popular items.
5. The materials going into production do not meet quality standards.
For each of the five process failures described, provide a two- to three-sentence description of the control plan that you believe would best address that deficiency. Obviously, there could be more than one plan that is ger-mane to a particular situation. However, select only one plan for each of the five process failures, and include in your description a justification of why you believe it is best. When in doubt, opt for the plan that is preventive in nature, as opposed to plans that are detective or corrective.



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  • CreatedDecember 15, 2014
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