Question
Newcrest Limited (Newcrest) is a large supplier of building products and has multiple branches in Australia. The central store of Newcrest has separate purchasing and
Newcrest Limited (Newcrest) is a large supplier of building products and has multiple branches in Australia. The central store of Newcrest has separate purchasing and receiving departments for timber, plaster, and bricks. The timber department requisitions most of its purchases for its branches and these purchases need to be approved by the department manager within central stores. The two other departments can raise requisitions for goods without authorization. The central purchasing department is responsible for obtaining goods as soon as the requisition is received from the branches, using unnumbered purchase orders. For convenience, the purchase order book at the various branches is accessible to all staff.
Complete the following:
list and explain three control weaknesses in purchasing department of Newcreast.
outline the recommendation to improve the three weaknesses identified above.
if the auditor concluded the internal control are weak, what impact would that have overall strategy.
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