Ustumer 1 when the business policy is for numeric customer lus (f) Misappropriation of goods by receiving staff, who also maintain inventory records (g) Ordering too much of a product 8.9 An accounts payable process is documented in the flowchart in figure 8.15. Using this flowchart as a reference: (a) Write a brief narrative that describes the operation of the process. (b) Identify any risks that are present in the system. (c) Identify any controls that are present in the case and explain their operation and the that they address. (d) Identify any risks that do not have relevant control activities and discuss the inte es the internal control activity that would be appropriate to address the risk. s characteristics and considerations Accounts clerk Computer Accounts manager Supplier Purchasing department Receiving department Capture details Accounts payable master data Invoice or Invoice or remittance advice Purchase order Receiving report Purchase order master data advice Purchase order Receiving report / Open orders/ Match documents Cheques Verify cheque Purchase order Receiving - report Search for due invoices Invoice or remittance Purchase order Receiving report Prepare and record cheques Cheques Invoice or remittance advice Purchase order Receiving Enter payable details report Payable details Cash payments data Sign cheque and cancels documents Invoice or remittance advice Purchase order Receiving Cheques Remittance advice Purchase order Receiving report Cancelled invoice Purchase order Receiving report Cancelled invoice Supplier report Closed orders FIGURE 8.15 Flowchart of the accounts payable process Chapter 8 Internal controls II 383 Ustumer 1 when the business policy is for numeric customer lus (f) Misappropriation of goods by receiving staff, who also maintain inventory records (g) Ordering too much of a product 8.9 An accounts payable process is documented in the flowchart in figure 8.15. Using this flowchart as a reference: (a) Write a brief narrative that describes the operation of the process. (b) Identify any risks that are present in the system. (c) Identify any controls that are present in the case and explain their operation and the that they address. (d) Identify any risks that do not have relevant control activities and discuss the inte es the internal control activity that would be appropriate to address the risk. s characteristics and considerations Accounts clerk Computer Accounts manager Supplier Purchasing department Receiving department Capture details Accounts payable master data Invoice or Invoice or remittance advice Purchase order Receiving report Purchase order master data advice Purchase order Receiving report / Open orders/ Match documents Cheques Verify cheque Purchase order Receiving - report Search for due invoices Invoice or remittance Purchase order Receiving report Prepare and record cheques Cheques Invoice or remittance advice Purchase order Receiving Enter payable details report Payable details Cash payments data Sign cheque and cancels documents Invoice or remittance advice Purchase order Receiving Cheques Remittance advice Purchase order Receiving report Cancelled invoice Purchase order Receiving report Cancelled invoice Supplier report Closed orders FIGURE 8.15 Flowchart of the accounts payable process Chapter 8 Internal controls II 383