Audit quality is fast becoming an increasing concern in the financial world. This is particularly important due to the rise of failures such as Silicon Valley Bank and FTX$.$ In particular, new companies appear to need significant enhancements in development and implementation of internal controls.

The attached flowchart portrays the purchasing function for raw materials inventory prepared as part of an auditor$$s work regarding the documentation of internal control over financial reporting for a large sized manufacturing company being audited for the first time.

Required

Identify and briefly explain the internal control weaknesses evident from the flowchart. Weaknesses may include but are not limited to activities performed, not performed, or incorrectly performed. The documents in the flowchart are prenumbered.

There are at least $20$ internal control weaknesses that can be identified from an analysis of the flowchart.

Full credit for the project will be provided for $15$ correctly identified and explained internal control weaknesses.

Your response should be numbered, identify each internal control weakness, and briefly explain the weakness, i$.$e$.$ what is not being done, what should be done, what is incorrectly being done, or what is not needed.

Example.

#$1.$ Weakness. Brief explanation

Please note:

This project is to be completed on an individual basis. Resources to be used for this project include the text, videos provided for Chapter $12,$ and Connect assignments for Chapter $12$ and the flowchart illustration. No ChatPT or other generative AI tools may be used in completing this project.