Charlatan Furniture Ltd is a large company engaged in the manufacture and import of self-assembly furniture kits.
Their system for the placing of purchase orders is:
(a) Requisitions are drawn up by production control, by marketing and by stores accounting who keep stores records on a computer. Requisitions are not pre-numbered.
(b) All requisitions must be cost allocation coded and be signed off as approved by a departmental manager. Certain codes (e.g. capital expenditure) are excluded from this process.
(c) Requisitions are sent to the purchasing department. They review the requisitions and complete purchase orders. Orders are placed with approved suppliers. There is an ongoing programmed to find the optimal suppliers.
(d) The orders are sent in triplicate - 1 is retained on file, 2 copied to requisitioner and 3 sent to the supplier. Orders are pre-numbered and are valued. Cost codes and total purchases for that cost code are entered on the order together with budgeted allowance for that code.
(e) The orders over a certain value have to be checked and signed off by the purchasing manager.

Discussion
- What information would you expect to see on the Permanent File in respect of this company?
- Draft and document an audit programmed for the audit of the above system.
- What information would you keep on the Current File?