Anthony, CPA, prepared the flowchart (p. 328) which portrays the raw materials purchasing function of one of Anthony's clients, Medium-Sized Manufacturing Company, from the preparation of initial documents through the vouching of invoices for payment in accounts payable. Assume that all documents are prenumbered.

Identify the deficiencies in internal control that can be determined from the flowchart. Use the methodology discussed in this chapter. Include internal control deficiencies resulting from activities performed or not performed.

Objective Assess control risk by linking key controls and control deficiencies to transaction-related audit objectives.

IM SIZED MANUFACTURING COMPANY Dute Pub JART OF RAW MATERIALS PURCHASING FUNCTION Approved by MANUFACTURING DIVISION FLOW CHARI IM SIZED MANUFACTURING COMPANY Dute Pub JART OF RAW MATERIALS PURCHASING FUNCTION Approved by MANUFACTURING DIVISION FLOW CHARI