INTERNAL CONTROL EVALUATION

A.Identify the control weaknesses depicted in the flowchart for Problem 1.

Problem 1

Warehouse Billing Accounts Receivable General Ledger Customer Sales Department B Customer 90 Customer Order Order Ledger Copy C 50 Stock SO GL Copy Copy Sales Clerk Prepares Various Herit Adds Prices SO Sales Order (30] Ledger Advice and Bills Copies and Copy Customer Check Updates Posts to Journal Picks and Ships Goods, AR and Updates Journal Ledger Sales 30 Invoice Copy Journal Ledger Inventory 80 Ledger Copy Sub Ledger Copy Invoice Updates General SO GL Copy AR and 90 Ledger Hemit Journal Stock Advice Copy Copy Check SO Stock Copy Customer AR Sub Ledger Carrier C A B Cash Reo Joumal Check BankInvoice 1 Charges AR Sub Customer File Closed Order Bill File Customer Customer Customer Data Invoice Invoice 2 File Item, quantity Sales Order Prepare Customer Open/Closed Order Order Update GL Accounts Open Order Item Picked GL File Pick Stock Release 1 Item and Goods Close SO Quantity Inventory Sub File BOL Stock Stock Release 2 Ship Release Goods Dept File BOL YURI PLUMBING Carrier INC