Note: Please answer all question

Q6: Purchasing System The purchasing system of Northern Manufacturing Co. starts when a department which requires material will submit the purchase requisition forms. Each requisition forms will be approved by the department head. Two copies are forwarded to the purchasing department and one copy is filed numerically at the originating department. Purchasing accounts for the numerical sequence of requisition forms on receipt. Pre-numbered purchase orders are prepared and approved. Three copies of purchase order are distributed to the requesting, receiving and account payable departments each. Two copies are sent to the vendor and one copy is filed numerically with the requisition form attached to it. A copy of the requisition is also forwarded to accounts payable. In the receiving department, the shipment are blind counted, inspected and recorded their blind copy of purchase orders. The blind copy are forwarded to the head of the receiving department. She compares the tally sheets with the purchase orders and prepares pre numbered receiving report. This report indicates the actual quantity received. Item returned to the vendor will be indicated on the receiving report and separate pre numbered debit notes are prepared. The department head accounts for the numerical sequence of receiving reports and debit memos. Copies of receiving report and debit notes are sent to the requesting, accounts payable, purchasing and stores departments. Each of these departments files all documents numerically. Invoices are received in the mailroom and sent to accounts payable department. A clerk in the accounts payable then compares details in the invoice with those on the purchase order, requisition form and receiving report. The clerk then assembles all the documents together with any related debit notes (if any) into a voucher package. She then initials the voucher package and submitted the voucher package to the cash disbursement department. The cash disbursement clerk prepares checks as soon as she received the voucher package. The voucher package is then forwarded to the controller for signature. The controller reviews each voucher package and manually signs the checks. The signed checks together with the voucher package are sent to accounts payable department. The accounts payable supervisor detached the check from the voucher package and sent to mailroom. The voucher package is then filed in the department. Required: a. Identify all documents which are used in Northern Manufacturing Co's. Purchasing system and explain the purpose of each document. (5 marks) b. Prepare a document flowchart of the above purchasing system. (15 marks) c. Suggest appropriate internal control procedures for the proposed system (20 marks) Q6: Purchasing System The purchasing system of Northern Manufacturing Co. starts when a department which requires material will submit the purchase requisition forms. Each requisition forms will be approved by the department head. Two copies are forwarded to the purchasing department and one copy is filed numerically at the originating department. Purchasing accounts for the numerical sequence of requisition forms on receipt. Pre-numbered purchase orders are prepared and approved. Three copies of purchase order are distributed to the requesting, receiving and account payable departments each. Two copies are sent to the vendor and one copy is filed numerically with the requisition form attached to it. A copy of the requisition is also forwarded to accounts payable. In the receiving department, the shipment are blind counted, inspected and recorded their blind copy of purchase orders. The blind copy are forwarded to the head of the receiving department. She compares the tally sheets with the purchase orders and prepares pre numbered receiving report. This report indicates the actual quantity received. Item returned to the vendor will be indicated on the receiving report and separate pre numbered debit notes are prepared. The department head accounts for the numerical sequence of receiving reports and debit memos. Copies of receiving report and debit notes are sent to the requesting, accounts payable, purchasing and stores departments. Each of these departments files all documents numerically. Invoices are received in the mailroom and sent to accounts payable department. A clerk in the accounts payable then compares details in the invoice with those on the purchase order, requisition form and receiving report. The clerk then assembles all the documents together with any related debit notes (if any) into a voucher package. She then initials the voucher package and submitted the voucher package to the cash disbursement department. The cash disbursement clerk prepares checks as soon as she received the voucher package. The voucher package is then forwarded to the controller for signature. The controller reviews each voucher package and manually signs the checks. The signed checks together with the voucher package are sent to accounts payable department. The accounts payable supervisor detached the check from the voucher package and sent to mailroom. The voucher package is then filed in the department. Required: a. Identify all documents which are used in Northern Manufacturing Co's. Purchasing system and explain the purpose of each document. (5 marks) b. Prepare a document flowchart of the above purchasing system. (15 marks) c. Suggest appropriate internal control procedures for the proposed system (20 marks)