Question
Lisa Curtis is documenting the purchasing and cash payments processes at Hardies Wholesaling. Hardies Wholesaling imports garden and landscaping items such as pots, furniture, fountains,
Lisa Curtis is documenting the purchasing and cash payments processes at Hardies Wholesaling. Hardies Wholesaling imports garden and landscaping items such as pots, furniture, fountains, mirrors and 222 Auditing: A Practical Approach sculpture from suppliers in South-East Asia. All items are non-perishable and made from materials such as stone, concrete, metal and wood, and are distributed to retailers throughout the country. Purchases are denominated in US dollars, which the company acquires under forward exchange contracts. The purchasing department initiates a purchase order when stock levels reach reorder points or sales staff notify the department of large customer orders that need to be specially filled. The purchase order is approved and sent to suppliers selected from an approved supplier list. Goods are transported from South-East Asia by ship and are delivered by truck to Hardies Wholesaling central warehouse. A receiving report is generated by the receiving department and forwarded to the accounts department for matching with the copy of the original purchase order and the supplier's invoice. When the package of documents is completed, the purchase order and invoice are entered into the general ledger. The cash payments department raises a voucher to request payment of the invoice according to the supplier's payment terms. The payment is approved and the cash payment is made. Required (a) Create a flowchart or logic diagram to represent the flow of transactions from the raising of a purchase order to cash payment. (b) Which duties in the above process should be segregated?
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