The accompanying narrative for Figure 1 is as follows. Superstore Ltd, sometimes orders items, such as desks, chairs and filing cabinets, that are not kept as part of inventory. It performs its order and payment activities for these non-inventory orders and payments using its integrated Enterprise Resource Planning (ERP) system. The operation of the system is described in Figure 1. Because the items concerned are not inventory, the accounts payable clerk, rather than the inventory purchasing manager, handles the activity. As the first step, when a purchase requisition is received, the accounts payable clerk checks that the requisition has been authorised by the relevant head of department and that all required information is present. The clerk further checks that the requisition nominates the supplier with the cheapest price for that item. Because purchase of these items is infrequent, the suppliers of these items are generally new suppliers. The accounts payable clerk verifies supplier details and creates a supplier record. The requisition information is then keyed into the computer system and a purchase order record created. That order is emailed to the supplier. ble clerk enters details into the ERP. When a supplier invoice is received, the accounts The ERP system performs an automatic three-way match of the supplier invoice with the corresponding purchase order (PO) record and receiving report (RR) record to check that the supplier, item, quantity, and price agree across all documents. If all documents are present and all details agree, the ERP adds the approval task to the accounts payable clerk's workflow. The clerk then reviews the transaction documentation and, if there are no problems, updates the status of the invoice to 'approved for payment' and updates the accounts payable subsidiary ledger to record the liability. Each Friday, the ERP adds to the financial accountant's workflow the list of approved supplier invoices that are due for payment within the next week. All payments are via electronic funds transfer (EFT), and the financial accountant and the financial controller are the only employees authorised to pay funds. When a payment is made, the ERP stores a copy of the EFT voucher in a file and notifies the accounts payable clerk of the payment. On receipt of the notification, the accounts payable clerk updates the accounts payable subsidiary ledger A) state the name or type of the diagram shown in Figure 1. Also, state the characteristics you recognize in Figure 1. B) An internal control weakness has been identified in the voucher system. There is no indication that support documents in the voucher package are marked "cancelled" or "paid" after being used to issues a cheque. This can result in duplicate payments. Suggest the problem.

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1.0 Verify requisition details Supplier list Purchase order file Various departments Purchase requisition Validated requisition 2.0 Prepare special purchase order Purchase order Purchase order file- Receiving report file Invoice file invoice into ERP Invoice Supplier 4.0 Match invoice with PO and RR Matched documents 5.0 Approve invoice for payment Payable details Accounts payable subsidiary ledger Invoice file Payment details Approved invoices 6.0 Execute payment EFT vouchers 7.0 Record payment 1.0 Verify requisition details Supplier list Purchase order file Various departments Purchase requisition Validated requisition 2.0 Prepare special purchase order Purchase order Purchase order file- Receiving report file Invoice file invoice into ERP Invoice Supplier 4.0 Match invoice with PO and RR Matched documents 5.0 Approve invoice for payment Payable details Accounts payable subsidiary ledger Invoice file Payment details Approved invoices 6.0 Execute payment EFT vouchers 7.0 Record payment

Answer rating: 100% (QA)

A The diagram shown in Figure 1 appears to be a flowchart A flowchart is a type of diagram that represents a workflow or process It shows the steps as ... View the full answer