PROBLEM 8: PHYSICAL CONTROLS Vendor Purchases Inventory Control Receiving Accounts Payable Cash Disbursements General Ledger Goods Amve Purchasing Prepares Three Copies of PO om Vendor Purchase Orde with Packing Sip Pacing Sip Update Inventry Ledger Purchase Order Record Labity Check Copy AP S Purchase Order Purchase Order ventory Su Ldger Receiving Repon Update Invenry Ledger Caneral Invoice Involce Invoice Fle Check Copy Check Fle Invoice Check Copy Check Copy Check FM

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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PHYSICAL CONTROLS
Using the flowchart of a purchases system for this Problem, identify six
major physical control weaknesses in the system. Discuss the
unmitigated risks associated with each weakness.

 

PROBLEM 8: PHYSICAL CONTROLS
Vendor Purchases Inventory Control Receiving Accounts Payable Cash Disbursements
General Ledger
Goods Amve
Purchasing
Prepares Three
Copies of PO
om Vendor
Purchase
Orde
with Packing Sip
Pacing
Sip
Update
Inventry
Ledger
Purchase
Order
Record
Labity
Check
Copy
AP S
Purchase
Order
Purchase
Order
ventory
Su
Ldger
Receiving
Repon
Update
Invenry
Ledger
Caneral
Invoice
Involce
Invoice
Fle
Check
Copy
Check
Fle
Invoice
Check
Copy
Check
Copy
Check
FM
Transcribed Image Text:PROBLEM 8: PHYSICAL CONTROLS Vendor Purchases Inventory Control Receiving Accounts Payable Cash Disbursements General Ledger Goods Amve Purchasing Prepares Three Copies of PO om Vendor Purchase Orde with Packing Sip Pacing Sip Update Inventry Ledger Purchase Order Record Labity Check Copy AP S Purchase Order Purchase Order ventory Su Ldger Receiving Repon Update Invenry Ledger Caneral Invoice Involce Invoice Fle Check Copy Check Fle Invoice Check Copy Check Copy Check FM
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