Use Couture is documenting the purchasing and cash payments processes at Hardies Wholesaling. Hardies Wholesaling imports garden

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Use Couture is documenting the purchasing and cash payments processes at Hardies Wholesaling. Hardies Wholesaling imports garden and landscaping items, such as pots, furniture, fountains, mirrors, and sculpture, from suppliers in Southeast Asia. All items are non-perishable, are made from materials such as stone, concrete, metal, and wood, and are distributed to retailers throughout the country.
Purchases are denominated in U.S. dollars, which the company acquires under forward exchange contracts. The purchasing department initiates a purchase order when inventory levels reach reorder points or sales staff notify the department of large customer orders that need to be specially filled. The purchase order is approved and sent to suppliers selected from an approved supplier list. Goods are transported from Southeast Asia by ship and are delivered by truck to Hardies Wholesaling's central warehouse. A receiving report is generated by the receiving department and forwarded to the accounts department for matching with the copy of the original purchase order and the supplier's invoice. When the package of documents is completed, the purchase order and invoice are entered into the general ledger. The cash payments department initiates a voucher to request payment of the invoice according to the supplier's payment terms. The payment is approved and the cash payment is made.
Required
(a) Create a flowchart to represent the flow of transactions from the initiation of a purchase order to cash payment.
(b) Which duties in the above process should be segregated?
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Related Book For  book-img-for-question

Auditing A Practical Approach

ISBN: 978-1742165943

1st Canadian Edition

Authors: Robyn Moroney

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