Segregation of dutiesis one of the significant control activities in any accounting system. It deals with the assignment of duties to individuals in a way that each control only one controlled activity in all the phases of processing a transaction, thus helping to detect misstatements. A flowchart of K Company’s purchasing and cash disbursements system.

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Chapter 11, Problem 11.26P

a

To determine

Introduction:Segregation of dutiesis one of the significant control activities in any accounting system. It deals with the assignment of duties to individuals in a way that each control only one controlled activity in all the phases of processing a transaction, thus helping to detect misstatements.

A flowchart of K Company’s purchasing and cash disbursements system.

b

To determine

Introduction:Segregation of dutiesis one of the significant control activities in any accounting system. It deals with the assignment of duties to individuals in a way that each control only one controlled activity in all the phases of processing a transaction, thus helping to detect misstatements.

The internal control weaknesses concerning purchases and payments of special orders.

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