terminal. The three documents, along with the check,
are then passed on to the assistant treasurer. As an
additional control, the assistant treasure reviews the
supporting documents and makes a photocopy of the
check for record-keeping purposes. The treasurer and
then signs the check, which is immediately sent to the
vendor for payment. The invoice, purchase order
copy, receiving report, and check copy are filed in
the department.
Required:
a. Create a data flow diagram of the current system.
b. Create a system flowchart of the existing system.
c. Analyze the internal control weaknesses in the system.
Model your response according to the six categories
of physical control activities specified in the
COSO internal control framework.
d. Prepare a system flowchart of a redesigned
computer-based system that resolves the control
weaknesses you identified.