The mail is opened by an accounting clerk. Vendor invoices are stamped with a voucher stamp and forwarded to the purchasing agent. The purchasing agent matches the receiving report, purchase order, and vendor invoices. He then forwards the combined voucher set to the controller, who reviews the documents, approves them, and records the account coding within the voucher stamp. She then forwards the voucher set to the accounts payable clerk.
The accounts payable clerk records the approved invoices onto an accounts payable vendor card and a purchases journal using a one- write system. The clerk then initials the invoice and files it alphabetically by vendor. At month’s end, the clerk prepares an accounts payable aging report and totals the columns in the purchases journal, which is used by the controller for preparing a monthly journal voucher.
The controller uses the accounts payable aging report to indicate those vendors to be paid. In addition, the accounts payable clerk files invoices that contain cash discount terms in a calendar according to due date. The accounts payable clerk manually writes the checks, posts the amounts to the vendor cards, and records the amount in the cash disbursements journal using a one- write system. The clerk then runs the checks through a check protector and forwards them to the check signers. Two signatures are required. Normally, the controller signs the checks first, followed by the office manager. The checks occasionally are signed in advance by the office manager. Normally, the supporting invoice vouchers are not given to the check signers. The checks are then returned to the accounts payable clerk, who mails them along with any requested remittance advices to the vendors. The clerk then files the vouchers alphabetically in a paid bills file. Each month the accounts payable clerk receives the bank statement and canceled checks. Using the cash disbursements journal, the clerk prepares the bank reconciliation and for-wards it to the controller for her review and approval.

a. Prepare a DFD of these procedures.
b. Prepare an analytic flowchart of these procedures.
c. Identify potential internal control weaknesses in these procedures.

  • CreatedFebruary 26, 2015
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