The accounts clerk of WW captures supplier invoice details in an accounts payable application. The application prompts the accounts clerk to enter an order number. Once payment invoice details have been entered, the computer application performs a reasonableness and completeness check to search the open order for items matched against receiving reports, but not yet matched against an invoice. The accounts clerk confirms the invoice details by matching the open order, line item by line item, against the invoice details previously captured. Adjustments to order and receiving report details can be made to facilitate unit price changes as a result of new price lists. ~ The application then prepares cheques for the invoice items that are due. If necessary, the application prompts the accounts payable clerk to update master data required to process cheques before printing them out. The invoice, purchase order and receiving report are then forwarded to the Accounts Manager, who cross-checks their details with the amount and payee names on the cheques that the computer prepared. The cheques are then signed and forwarded, along with the remittance advice, to the supplier. The invoice, purchase order and receiving report are then given to the Accounts Clerk who files the documents alphabetically in the Closed Orders file.Accounts clerk Computer Accounts manager Supplier Purchasing Receiving department department Capture Accounts details payable master data Invoice or Purchase Receiving Invoice or remittance order report remittance advice advice Purchase order master Purchase Open data order Receiving orders report Match documents Purchase Search for due Cheques Verify order cheque Invoice or Receiving invoices remittance report advice Purchase order Cheques Receiving Prepare and Invoice or report record cheques remittance advice Purchase h order Enter payable Receiving details report Cash Payable payments details data Sign cheque and cancel Invoice or documents remittance Purchase Cheques advice order Remittance Purchase Receiving advice Purchase order report order Receiving Cancelled Receiving report invoice Supplier report Cancelled invoice Closed orders Ba) explain in your own words the importance of segregation of duties as an internal control in the context of this case. Reference Parkes et al. ~ b) analyse the case study for weaknesses in the payments process that increases the risk of fraudulent and/or incorrect payments. c) recommend controls that should be in place to reduce the risks identified in (b)
