Auditing and Assurance Services 9th Edition by Alvin Arens,Mark Beasley,Randy Elder

تمرين 29

Yardley, CPA, prepared the flowchart on the following page, which portrays the raw materials purchasing function of one of Yardley's entities, a medium-size manufacturing company, from the preparation of initial documents through the vouching of invoices for payment. The flowchart represents a portion of the work performed on the audit engagement to evaluate internal control.
Required:
Identify and explain the control weaknesses evident from the flowchart. Include the internal control weaknesses resulting from activities performed or not performed. All documents are prenumbered.
(AICPA, adapted)