Case Study Carosel Limited is a specialty motor vehicle parts supplier, procuring parts from a large number of suppliers. As part of the interim audit work four weeks prior to the company year$$s end, you are testing the procurement$/$purchases systems, attending the inventory count and examining the sales and cash receipts. Purchasing$/$Procurement System

$$ When the quantity of a specific part falls below re$-$order level, an e$-$mail is sent to the procurement department detailing the part required and the quantity to order. Parts inventory is monitored by the store$$s manager with a copy of the e$-$mail filed on the store manager's computer.

$$ Procurement department staff check the e$-$mail, allocate the order to an authorised supplier and send the order to that supplier using Electronic Data Interchange $($EDI$).$ The order is identified by a unique order number with a copy of the EDI order filed in the order database by the computer system.

$$ When goods are received at Carosel, the stores clerk confirms that the inventory agrees to the delivery note. The clerk also checks the order database to ensure that the inventory were in fact ordered by Carosel since delivery is refused where goods do not have a delivery note.

$$ The order in the order database is updated to confirm receipt of goods, and the perpetual inventory system updated to show the receipt of inventory. The physical goods are added to the parts store and the paper delivery note is stamped with the order number and is filed in the goods inwards department.

$$ The supplier sends a purchase invoice to Carosel using EDI; invoices are automatically routed to the accounts department. On receipt of the invoice, the accounts clerk checks the order database, matches the invoice details with the database and updates the database to confirm receipt of invoice. The invoice is added to the purchases database, where the purchase day book $($PDB$)$ and suppliers individual account in the payables ledger are automatically updated.

What are the audit procedures that an auditor would normally carry out on the purchases system at Carosel, explaining the reason for each procedure?