ABC Limited has recently observed some growth in their sales. The company has managed its expenditure cycle activities through a paper and pencil-based system. In response to this rapid growth, the company decided to configure a new expenditure cycle using the basic technology. The head of the accountant is mainly concerned about the business activities of the following departments:

• Purchasing Department;
• Receiving Department; and
• Account Payable Department.
• These business activities are presented in Figure 2 below. 1- Based on the above information, discuss the uncontrolled risks associated with the system as currently configured?
• 2
  

Purchases Department Receiving Department Account Payable Department Packing Slip Vendor Inventory Identity Imma Propane and Soloct Receiving Reconcile Vendor documents and set up Liability Packing Rod Ropri Account Payable On Due date PO Reprt Remove tablity and Disburse cash PO Invoice Disbursements Popri Vandor Check Vandor