Which of the following internal control weaknesses would an auditor most likely detect while reviewing a flowchart that depicts the purchasing function of an organization?
Which of the following internal control weaknesses would an auditor most likely detect while reviewing a flowchart that depicts the purchasing function of an organization?
An auditor reviewing a flowchart depicting the purchasing function of an organization would most likely detect if payments to suppliers are made before goods are received. Flowcharts are visual representations that help in understanding the sequence of processes and controls. Detecting payments made prior to receiving goods would be apparent through the flow of activities in the chart, highlighting a significant control weakness where the payment process occurs out of sequence.
the english understanding need to be careful . e.g. For C - payment "have not been authorised" means that an event has occurred which does not occur when reviewing the flowchart.
could you please explain the answer in detail.
The appropriate level of authorization was certainly provided in the flowchart but was not respected. This will only be detected during the field phase.
Could you please share your thoughts on correct answer.
D. A to C are likely to be detected after examining more evidences. Typical flow is, after assessing the flow chart, identifying key controls and then evaluating the control. A-C are likely to found in the last step.
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