(a), (b) & (c)

Weakness Control Effect of new IT

Buyer does not verify that Compare requested amount to System can automatically
dept. heads request is within total budget and YTD compare requested amount to
budget expenditures remaining budget

No procedures established to Solicit quotes/bids for large EDI and Internet can be used
ensure best price obtained. orders to solicit bids

Buyer does not check Prepare vendor performance Vendor performance ratings
vendors past performance report and use it when can be updated automatically
selecting vendors and made available to buyer

Blind counts not made by Black out quantities ordered
receiving on copy of purchase order
sent to receiving; provide
incentives if discrepancies
between packing slip and
actual delivery are detected
Request bar coding of all
items and use bar code
scanners to check in all
deliveries; still provide
incentives if discrepancies
between packing slip and
actual delivery are detected

Written notice of equipment Send written notice of Bar coded data and/or
receipt not sent to purchasing equipment receipt to receiving comments entered
purchasing via on-line terminals
automatically routed to
purchasing

Written notice of equipment Send written notice of EDI notification of equipment

receipt not sent to accounts equipment receipt to accounts receipt to accounts payable
payable payable

Mathematical accuracy of Verify mathematical accuracy Automatic verification of

vendor invoice not verified of vendor invoice mathematical accuracy of
vendor invoice

Invoice quantity not compared Compare/verify invoiced System verifies invoice

to receiving report quantity quantity with quantity received quantity with quantity received

Notification of acceptability of Obtain confirmation from EDI confirmation of equipment

equipment from requesting requisitioner of the acceptability
department not obtained prior acceptability of equipment
to recording payable ordered prior to recording
payable

No alphabetic file of vendors Establish vendor master file. Establish vendor master file.
from whom purchases are Restrict access and vouch all Restrict access and vouch all
made is maintained updates updates