The company uses prenumbered purchase orders. Only the Purchasing Manager can use and authorize purchase orders. Once
Question:
The company uses prenumbered purchase orders. Only the Purchasing Manager can use and authorize purchase orders. Once the purchase order has been sent to a supplier, a copy is given to the accounting department. They keep a copy of all purchase orders and check if any purchase orders are missing in the sequence. Once an invoice is received from the supplier, it is not related to the purchase order and the goods received note. It is simply paid by the accounting staff. Once the invoice is paid, the accounting staff makes the corresponding entries in the accounting system. A junior accounts clerk checks the vendors' monthly statements against the vendor's general ledger balance to ensure there are no errors.
Audit question:
Are the established controls adequate? what improvement can be made.