Summer 2020 Flowcharting and Internal Control Project The purpose of this project is to prepare a flowchart and to evaluate the design of controls for the sales process of a hypothetical audit client, Parts and Supplies, Inc., (PSI). In order to complete this project, you will use the client information included below and a transcript of an interview of the client's controller, which is included in a separate file. Company Background Ross Arthur, LLP, recently agreed to audit the financial statements of a new audit client, Parts and Supplies, Inc. (PSI), for the year ending December 31, 2020. PSI is a privately-held company located in Columbus, Ohio. PSI sells building materials and tools to construction companies and contractors throughout the Midwest. The company was established in 1952, and members of the founder's family continue to control all shares in the company. Over the past several years, PSI's revenues and profits have remained very stable, with consistent sales growth of approximately 3%. Required: Assume that you are a staff auditor at Ross Arthur, LLP, which is in the process of assessing internal control for the revenue process as part of the current year financial statement audit of their new client, Parts and Supplies, Inc. The audit manager of this engagement has provided the client background along with a transcript of an interview between the audit senior on this engagement and PSI's Controller. You have been assigned the responsibility to prepare a flowchart and evaluate the design of controls for the sales process. You will complete the following by considering the background information about (PSI) and by evaluating the transcript of the audit senior's interview of PSI's Controller. Examples of documents used in PSI's sales process are included after Exhibit 1. a) Prepare a flowchart that documents the sales process, using the flowcharting capabilities of MS Word. Do not include the general ledger function in your flowchart. Also, cash receipts transactions, sales returns, and other processes such as payroll or expenditures are not included in this project. Summer 2020 Flowcharting and Internal Control Project The purpose of this project is to prepare a flowchart and to evaluate the design of controls for the sales process of a hypothetical audit client, Parts and Supplies, Inc., (PSI). In order to complete this project, you will use the client information included below and a transcript of an interview of the client's controller, which is included in a separate file. Company Background Ross Arthur, LLP, recently agreed to audit the financial statements of a new audit client, Parts and Supplies, Inc. (PSI), for the year ending December 31, 2020. PSI is a privately-held company located in Columbus, Ohio. PSI sells building materials and tools to construction companies and contractors throughout the Midwest. The company was established in 1952, and members of the founder's family continue to control all shares in the company. Over the past several years, PSI's revenues and profits have remained very stable, with consistent sales growth of approximately 3%. Required: Assume that you are a staff auditor at Ross Arthur, LLP, which is in the process of assessing internal control for the revenue process as part of the current year financial statement audit of their new client, Parts and Supplies, Inc. The audit manager of this engagement has provided the client background along with a transcript of an interview between the audit senior on this engagement and PSI's Controller. You have been assigned the responsibility to prepare a flowchart and evaluate the design of controls for the sales process. You will complete the following by considering the background information about (PSI) and by evaluating the transcript of the audit senior's interview of PSI's Controller. Examples of documents used in PSI's sales process are included after Exhibit 1. a) Prepare a flowchart that documents the sales process, using the flowcharting capabilities of MS Word. Do not include the general ledger function in your flowchart. Also, cash receipts transactions, sales returns, and other processes such as payroll or expenditures are not included in this project
