Purchasing Check (40 marks)

Before the external auditor audited the procurement item, he studied the procurement activity with the aim of evaluating the internal control of Al-Intisar Company. The following notes were found that show the companys commitment to the components of internal control, referring to the elements included in this component. It is required to review and discuss these notes, indicating the following Determining the basic elements of purchasing control Determine what these observations constitute strengths or weaknesses of internal control The internal control component that relates to this observation

Sequence Action Strength/weakness of the internal control component The control component of this component 1 The auditor visited the company and found out that the purchasing manager records the incoming and outgoing in the warehouses 2 An employee of the financial department prepares special checks to pay the purchase invoices, and the financial manager signs these checks 3 The internal auditor submitted a report to the Audit Committee about some special difficulties in obtaining some information from the accounting department 4 The management determined the possibility of a shortage in stock as a result of the inexperience of the warehouse department in the method of keeping stock 5 It turns out that the deferred purchases were recorded in the sales account 6 A relative of the Director General was appointed as Director of the Financial Department without being subject to the appointment policies 7 The administration did not assign a guard to its warehouses because it was convinced that the guards salary is greater than the cost of the loss resulting from theft of goods due to the low value of these goods 8 The accounting department submits monthly financial statements about the performance of the facility and its profit assessment 9 A customer complained to the complaints department about errors in the value of the amounts paid to him 10 The financial manager has been assigned the tasks that he must perform, which is to agree to pay bills and sign checks