Fact Finding: After sampling paid 5,000 transactions (USD 3,596,000) out of 40,000 (USD 6,684,900), for purchasing items done in Q3, 2019, Internal Auditor found the following:

• No price comparison for 890 Purchase Orders (POs) of raw material worth USD 556,200. Most of these items were written URGENT. Company has a policy of comparing at least 3 quotations. Urgent items must be individually approved by Mill Director. Some POs were found no approval due to Mill Director on leave.Direction

Evaluate test result and control deficiency as the following:

1. Identify existing compensating controls and determine if they are effective and efficient
2. Classify of deficiencies and assess the deficiencies in combination with others

4. Compensating Control (exist ? effective? Efficient?) 5. Deficiency classification