Prepare a flowchart for the acquisition and the payment cycle for Johnson Machinery Company.
2.List the controls in existence for each of the six transaction-related audit objectives for acquisitions.
3.For each control in part 2, list one test of control procedure for verifying its effectiveness.
4.List the most important deficiencies in the acquisition and payment cycle.
5.Identify the most likely error or fraud that could result from each of the deficiencies listed in part 4.
6.Suggest a system alteration for JMC that would correct each of the deficiencies identified in part 4. Be sure to keep cost/benefit in mind.
7.Design an audit program to test internal control. The program should include, but not be limited to, tests of controls from part 3 and procedures to compensate for the deficiencies in part 4.
8.  Prepare a separate Internal Control Report over Financial Reporting based upon your evaluation of the identified audit deficiencies.