While performing an internal audit engagement, an auditor reviews a flowchart of the organization's purchasing function. Which of the following internal control weaknesses would the auditor be able to identify in the chart?
A) That purchasing policies have not been updated.
B) That supplier invoices are processed and paid before the goods are received.
C) That the organization is not taking advantage of quantity discounts available from its suppliers.
D) That authorization for payment of goods received has not been granted at the appropriate level.

Question

Quizplus · Accepted Answer

A flowchart can reveal process sequences, such as if invoices are processed and paid before goods are received, indicating a control weakness.

While Performing an Internal Audit Engagement, an Auditor Reviews a Flowchart