The company uses pre-numbered purchase orders. Only the Purchase Manager is able to use and authorize the purchase orders. Once the purchase order has been sent to a supplier, a copy is given to the accounting department. They keep a copy of all the purchase orders and check to see whether any purchase orders are missing in the sequence. Once an invoice is received from the supplier, it isn't matched to the purchase order and goods received note. It is simply paid by the accounting staff. Once the invoice is paid, the relevant entries are then made in the accounting system by the accounting staff. A junior accounts clerk compares the suppliers' monthly statements against the general ledger balance for the supplier to make sure there are no errors.

Audit question:

are the controls in place adequate? what improvement can be made