8.9 An accounts payable process is documented in the flowchart in figure 8.15. Using this flowchart as a reference: (a) Write a brief narrative that describes the operation of the process. (b) Identify any risks that are present in the system. (c) Identify any controls that are present in the case and explain their operation and the risks that they address (d) Identify any risks that do not have relevant control activities and discuss the internal control activity that would be appropriate to address the risk. Accounts clerk Computer Account manage Supplier Purchasing department Receiving department Capture details Accounts payable master data Invoice or remittance advice Purchase order Receiving report Purchase order master Invoice or remittance advice Purchase order Recebing report Open prders Cheques Purchase order Receiving report Search for due invoices Verity cheque Match documents Invoice or remittance advice Purchase order Receiving report Prepare and record cheques Cheques Invoice or remittance advice Purchase Enter payable details Receiving report Payable details Cash payments data Sign chaque and documents Cheques Remittance advice Invoice or remittance advice Purchase order Receiving report Purchase order Receiving report Cancelled invoice Purchase order Receiving report Cancelled Supplier Closed prdery FIGURE 8.15 Flowchart of the accounts payable process Chapter 8 Internal contro il 383 8.9 An accounts payable process is documented in the flowchart in figure 8.15. Using this flowchart as a reference: (a) Write a brief narrative that describes the operation of the process. (b) Identify any risks that are present in the system. (c) Identify any controls that are present in the case and explain their operation and the risks that they address (d) Identify any risks that do not have relevant control activities and discuss the internal control activity that would be appropriate to address the risk. Accounts clerk Computer Account manage Supplier Purchasing department Receiving department Capture details Accounts payable master data Invoice or remittance advice Purchase order Receiving report Purchase order master Invoice or remittance advice Purchase order Recebing report Open prders Cheques Purchase order Receiving report Search for due invoices Verity cheque Match documents Invoice or remittance advice Purchase order Receiving report Prepare and record cheques Cheques Invoice or remittance advice Purchase Enter payable details Receiving report Payable details Cash payments data Sign chaque and documents Cheques Remittance advice Invoice or remittance advice Purchase order Receiving report Purchase order Receiving report Cancelled invoice Purchase order Receiving report Cancelled Supplier Closed prdery FIGURE 8.15 Flowchart of the accounts payable process Chapter 8 Internal contro il 383