there are no resources. Its auditing

as stal 1. 2. DC 12-12 Analysis of Purchasing Process and Con- trols. LO1, 2 Integrated Measurement Sys- tems Inc. (IMS) is a Canadian public company that manufactures high-end measuring devices used primarily in the oil and natural gas indus- tries. In 20X3, it had sales of $100 million and 3 earnings before income tax of $5 million. The company has a December 31 year-end. Ted Pollock, IMS's CEO, is a proponent of strong corporate governance. He has spent the last year strengthening IMS's internal court environment. He believes that organizations demonstrate good corporate governance prac- tices will be perceived favourably by the markets. Ted wants to make a presentation to IMS's audit committee supporting the position that through- out the year the company's internal controls functioned in accordance with the company's control objectives. Depending on the reaction of the audit committee, Ted would like to make the presentation an annual event. IMS has hired your professional services firm to assist Ted in prepar- ing the content of his presentation. Your firm is currently assessing the pur- chasing process. Accordingly, IMS has pro- vided you with relevant material and access to the company's resources (Exhibit DC 12-12-1). As part of the analysis of this process, IMS has asked you to 1. identify the existing key internal controls within the purchasing process, 2. describe the procedures that IMS could use to test the controls, and 3. identify the internal control weaknesses within the purchasing process and recommend improvements