Inventory is stored in a locked room. During normal business hours an inventory employee allows any employee wearing an identification badge to enter the storeroom and remove needed items. The inventory storeroom employee counts the quantity removed and enters that information in an online terminal located in the storeroom. All supplier invoices are routed to the accounts payable section for review and approval. The system is configured to perform an automatic 3- way match of the supplier invoice with the corresponding purchase order and receiving report. Page 3 of 4 Each Friday, approved supplier invoices that are due within the next week are routed to the treasurer's department for payment. The cashier and treasurer are the only employees authorized to disburse funds, either by EFT or by printing a check. Checks are printed on a dedicated printer located in the treasurer's department, using special stock paper that is stored in a locked cabinet accessible only to the treasurer and cashier. The paper checks are sent to accounts payable to be mailed to suppliers. Each Friday, approved supplier invoices that are due within the next week are routed to the treasurer's department for payment. The cashier and treasurer are the only employees authorized to disburse funds, either by EFT or by printing a check. Checks are printed on a dedicated printer located in the treasurer's department, using special stock paper that is stored in a locked cabinet accessible only to the treasurer and cashier. The paper checks are sent to accounts payable to be mailed to suppliers. Monthly, the treasurer reconciles the bank statements and investigates any discrepancies with recorded cash balances. Required; i) Explain three strengths identified within Unilever ltd purchasing transaction cycle based on the above information. (3 marks) ii) Explain three weaknesses identified within Unilever ltd purchasing transaction cycle based on the above information. (3 marks) iii) Prepare a revised Data Flow Diagram (DFD) for Unilever Itd purchasing transaction cycle that the company should adopt to address the weaknesses identified in (ii) above. The Data Flow Diagram should be as detailed as possible and include all the processes involved in the purchasing transaction cycle of the company. (6 marks) Purchasing agents use the Internet to compare prices in order to select suppliers. If an Internet search discovers a potential new supplier, the purchasing agent enters the relevant information in the system, thereby adding the supplier to the approved supplier list. Purchase orders above \\( 10,000,000 \\) must be approved by the purchasing department manager. Paper purchase orders are printed and mailed to suppliers. Receiving department employees have read-only access to outstanding purchase orders. Usually, they check the system to verify the existence of a purchase order prior to accepting delivery, but sometimes during rush periods they unload trucks and place the items in a corner of the warehouse where they sit until there is time to use the system to retrieve the relevant purchase order. In such cases, if no purchase order is found, the receiving employee contacts the supplier to arrange for the goods to be returned. Receiving department employees compare the quantity delivered to the quantity indicated on the purchase order. Whenever a discrepancy is greater than \5, the receiving employee sends an email to the purchasing department manager. The receiving employee uses an online terminal to enter the quantity received before moving the material to the inventory stores department. Inventory is stored in a locked room. During normal business hours an inventory employee allows any employee wearing an identification badge to enter the storeroom and remove needed QUESTION TWO: (a) The ordering process is the first process within the fixed asset transaction cycle. Required; Explain three processes within the Ordering process that would be followed in the purchase Page 2 of 4 of a new vehicle by Naivas supermarket (3 marks) (b) Unilever Itd is a company that manufactures and sells various consumer products in Kenya. The Company performs its purchasing transaction cycle activities using its integrated ERP system as follows: Employees in any department can prepare purchase requisitions for items they note as being either out of stock or in small quantity. Each day, employees in the purchasing department process all purchase requests from the prior day. To the extent possible, requests for items available from the same supplier are combined into one larger purchase order in order to obtain volume discounts