Internal Control Using the following flowchart for of a purchases system, identify SIX major control weaknesses in the system. Discuss each weakness. Guide Questions and Notes - The process starts at the purchases department, is this where the whole P2P process should begin? - Check if the inventory ledger is updated using the appropriate accounting records - Check if the receiving department prepares the receiving report properly - Check if 3-way match is performed prior to posting invoices - Check if the proper reconciliation is performed prior to signing the checks - Check if GL has the necessary vouchers and documents in place prior to posting

1. Control Exception 1 __________________________________

2. Control Exception 2 ____________________________________

3. Control Exception 3______________________________________

4.Control Exception 4_____________________________________

5. Control Exception 5______________________________________

6. Control Exception 6_________________________________________

P2P Process Flowchart for Company A PROBLEM 8: INTERNAL CONTROL Vendor Purchases Inventory Control Receiving Accounts Payable Cash Disbursments General Ledger Purchasing Goods Arrive Prepares Three from Vendor Copies of POT Purchase Order with Parking Slip Prepar Packing Disbursement Invoice PO late Slip Voucher Inventory Purchase Records Lediger Order AP Ledger Check Check Purchase Purchase Copy Order Order Receiving Cash Gener Report Disbursement Check Ledger Voucher Invoice Cash Disbursement Voucher Invoice Check Copy Check Copy Check