Control 4 The Buyer must select a vendor from a preapproved list for all POs over $5,0. For POs under $5,{l, the Buyer can select any vendor. Control 5 The receiver who accepts the goods into the warehouse veries that the quantity received matches the bill of lading (BL) and signs on behalf of [MS for receipt of the goods listed on the BL. If there is a discrepancy in the quantity received, the receiver does not sign the BL; the BL is sent to the buyer to resolve the problem with the vendor. Control E The purchasing clerk matches the signed BL with the led copies oftlle PD and PR. Part B The following are internal control weaknesses found in the purchases and payment process of your auditee, IMS. Roguid: For each control weakness: :1. Describe the control risk that exists because of the weaknesswhat could go wrong? .5. Explain whether a monetary nancial statement misstatement could result because of the weakness, and, if so, what it would be. c. Describe in detail the impact the weakness will have on your other audit procedures. Control Weakness 1 The purchasing clerk does not verify that the PR5 are authorized by an appropriate person in the operating department but onl},r checks that there is a signature on the document. Control Weakness 2 Access to the warehouse is not controlled and anyone can enter and leave at any time. Control Weakness 3 The receiver does not match the BL to an authorized PD. EP 9-? Controls and Control Weaknesses in Purchasing System. L03. L04. L05. L05. LC}? Parts]. The following are internal control procedures found in the purchases and payment process of your auditee. Integrated Measurement Systems Inc. (1M5). Raga int-d: For each control procedure: a. Explain the type of control that is being applied. .5. Identify the control ohjective[s] that the control procedure meets. :3. Describe in detail one test of controls the auditor could perform to test the effectiveness of the control. Control 1 Purchase requests (PR5) from operating departments are authorized by the appropriate person in the requesting department. Control I The purchasing clerk verifies that there is a signature on the PR and then issues a prenumhered purchase order (PG) for the items required. The purchasing clerk retains copies of the PR and the PO and les them by PG number. Control 3 The purchasing manager reviews the PO to see whether the PR is authorized and. if so. approves it and forwards it to the buyer. Page 379