You are interviewing for a new, internal audit position at Widgets INC. As part of your interview
Question:
You are interviewing for a new, internal audit position at Widgets INC. As part of your interview process you have been asked to document the company’s accounts payable process.
You are provided the following description of the current accounts payable system at Widgets INC:
“Before Widgets INC pays a vendor invoice, the invoice is first matched against both the purchase order that requested the goods and the receiving report that the receiving department prepared. As these documents enter the accounts payable department at different times, there are separate alphabetical files for each. The purchase orders forwarded from purchasing are stored in a purchase order file and the receiving reports are stored in a separate receiving report file.
When Widgets INC receives a vendor invoice, the accounts payable clerk records the amount due in the accounts payable file and files the invoices in the vendor invoice file.
Widgets INC pays all accounts within ten days to receive early payment discounts. To pay a bill, the accounts payable clerk retrieves the vendor invoice, attaches the purchase order and the receiving report, and then forwards the matched documents to the controller.
The controller then reviews the documents to ensure they are complete. The controller also prepares a two part check and records the check in the cash disbursements journal. Lastly, the controller sends all documents to the owner of Widgets INC.
The owner then reviews the documents to make sure they are in fact valid payables and signs the checks. S/he then sends the check to the vendor and returns the documents and the check copy to the accounts payable clerk. The clerk then files the documents alphabetically in a paid invoice file and at the end of the period uses the accounts payable ledger to prepare an accounts payable report that is forwarded to the owner.
After the owner reviews the report, s/he files it chronologically.”
Assuming you still want the job:
Develop and label a Level 0 DFD for the accounts payable process at Widgets INC using the correct flowchart shapes.
