Review the narrative write- up resulting from interviews with the company's Purchasing Agent, Director of Accounting Payable and the Controller. Identify weaknesses in internal controls, provide a preliminary assessment of the overall control environment and determine which controls you would recommend for testing. Provide a brief power point presentation (2-3 slides) and be prepared to present to the class. Assignment if due February 21 before class. Post your homework in BB using the assignment icon provided.

Please describe the policies and process that the purchasing department follows for the creation, review and recording of company purchasing orders.

Does the company have a "grant of authority" stipulating requestion authorities i.e., which person's or roles with the company have authority levels for the type and dollar amount of the item or service being requested?

Does the purchasing department review open purchase files for old unfulfilled purchases to determine why the purchase is still open?

Does the company maintain a list of approved vendors and do you ever receive a request for an item from a vendor not on the approved vendors list?

You obtain three competitive bids for all purchases over $10,000, are there any exceptions?

When you receive your copy of a purchase order from the purchasing department what do you do with it?

How does the account payable department know that the item or service to be paid is recorded in the correct account, i.e., the correct account distribution?

 When you receive the invoice voucher and accompanying documents from accounts payable what do you do?

Answer rating: 100% (QA)

Based on the narrative writeup resulting from interviews with the companys Purchasing Agent Director of Accounting Payable and the Controller the following weaknesses in internal controls and prelimin... View the full answer