Which of the following internal control weaknesses would an auditor most likely detect while reviewing a flowchart that depicts the purchasing function of an organization?
A.
Purchasing policies have not been updated.
B.
The organization is not taking advantage of quantity discounts available from its suppliers.
C.
Payments for goods received have not been authorized at the appropriate level.
D.
Payments to suppliers are made before goods are received.
the english understanding need to be careful . e.g. For C - payment "have not been authorised" means that an event has occurred which does not occur when reviewing the flowchart.
The appropriate level of authorization was certainly provided in the flowchart but was not respected. This will only be detected during the field phase.
D. A to C are likely to be detected after examining more evidences. Typical flow is, after assessing the flow chart, identifying key controls and then evaluating the control. A-C are likely to found in the last step.
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