Can anybody help me identify what is wrong in this process as an auditors view and what needs to be corrected.

The purchasing and inventory process of steel sheets is as follows:

The marketing team prepares a monthly production budget and sends it to the production

manager.

When stock level falls below a certain level, the stores clerk prepares and sends purchase

orders to the purchasing department.

The purchasing clerk places orders with suppliers by faxing the purchase order.

When goods are received by the stores, the stores clerk updates bin card and raises the

goods received note (GRN) for the quantity of stocks received as per the supplier's delivery

note.

The stores clerk updates the stock module based on the supplier's delivery note.

A copy of the GRN is sent to the accounts department.

The accounts department staff updates the general ledger for stocks and payables based on

the supplier invoices.

In addition to the general ledger, the accounts department maintains a separate stock ledger,

since the stock module maintained by the stores is not linked to the general ledger.

At the month end, the invoices are settled by bank draft.