In response to the six primary physical control weaknesses that have been identified, make recommendations (one for each bullet).The purchase transaction should not be authorized by the purchases.The inspection of receiving items should be on basis of blind copy of purchase order provided not by the packing slip.The inventory subsidiary ledger is updated by the inventory control.The recording in accounts payable subsidiary ledger is without the supporting documents as recorded only on invoice receiving.The journal vouchers and summary reports from accounts payable department, cash disbursement system and inventory control should be received by general ledger department.The cash disbursements journal and check register are not in use.

The recommendations are given as,

Answered: hould be on basis of blind copy of…

Auditing: A Risk Based-Approach (MindTap Course List)

11th Edition

ISBN:9781337619455

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter9: Auditing The Revenue Cycle.

Section: Chapter Questions

Problem 36RQSC

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In response to the six primary physical control weaknesses that have been identified, make recommendations (one for each bullet).

The purchase transaction should not be authorized by the purchases.
The inspection of receiving items should be on basis of blind copy of purchase order provided not by the packing slip.
The inventory subsidiary ledger is updated by the inventory control.
The recording in accounts payable subsidiary ledger is without the supporting documents as recorded only on invoice receiving.
The journal vouchers and summary reports from accounts payable department, cash disbursement system and inventory control should be received by general ledger department.
The cash disbursements journal and check register are not in use.

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