Walker Books, Inc.

DFD Purchasing System

DFD Cash Disbursement System

Walker Books Inc.

Internal Control Weaknesses
1) A separate inventory control department should authorize purchases.
2) Receiving should use blind copy of the purchase order to force the
clerk to count and inspect the goods upon arrival.
3) Accounts payable should perform a three-way match between the
PO, Receiving Report, and the Suppliers Invoice.
4) The Accounts Payable Department should not write checks.
5) The invoice should not be destroyed. This is an audit trail issue.
6) Signing and distribution of the check is done without the benefit of
supporting documents or a valid vendor file.