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identify six major control weaknesses in the system. Discuss and classify each weakness in accordance with SAS 78/COSO.

identify six major control weaknesses in the system. Discuss and classify each weakness in accordance with SAS 78/COSO.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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PROBLEM 8 - INTERNAL CONTROL. Using the flowchart for Problem 8 of a purchases system, identify six major control weaknesses in the system. Discuss and classify each weakness in accordance with SAS 78/COSO.

 

 

PROBLEM 8: INTERNAL CONTROL Vendor Purchases Inventory Control Receiving Accounts Payable Cash Disbursments General Ledger Purchasing Prepares Three Copies of PO Goods Arrive from Vendor Purchase Order with Packing Slip Cash Disbursement Packing Slip Invoice Voucher Inventory Ledger Purchase Order AP Ledger Check Сорy Purchase Purchase Order Order Receiving Report Cash Disbursement General Check Ledger Voucher Cash Invoice Disbursement Voucher Invoice Check Check Сорy Сорy Check
Transcribed Image Text:PROBLEM 8: INTERNAL CONTROL Vendor Purchases Inventory Control Receiving Accounts Payable Cash Disbursments General Ledger Purchasing Prepares Three Copies of PO Goods Arrive from Vendor Purchase Order with Packing Slip Cash Disbursement Packing Slip Invoice Voucher Inventory Ledger Purchase Order AP Ledger Check Сорy Purchase Purchase Order Order Receiving Report Cash Disbursement General Check Ledger Voucher Cash Invoice Disbursement Voucher Invoice Check Check Сорy Сорy Check
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