Assessment of Internal Control Weakness of Platinum

Running head: ASSESSMENT OF INTERNAL CONTROL WEAKNESS OF PLATINUM
ASSESSMENT OF INTERNAL CONTROL WEAKNESS OF PLATINUM
Name of the Student
Name of the University
Author Note

1ASSESSMENT OF INTERNAL CONTROL WEAKNESS OF PLATINUM
Executive Summary:
Purchase process is one of the most concerned process for an organisation because of the
loopholes that exists within it. The complexity with the discussed process is further enhanced
if internal control weaknesses are identified within it. The discussed paper has taken
consideration of Platinum manufacturing group and identified the internal control weakness
existing within it. Depending on the identification recommendations have been made that can
assist in mitigating the identified internal control weakness. The identified weakness was
related to the documentation and complexity of the process for which adoption of ICT and
formulating of team to monitor and carry the process has been recommended. Adopting the
discussed measures may mitigate the challenges associated with the organisational purchase
process. The discussed report has been concluded with reviewing of the flexibility of the
recommended measures and whether or not they are compatible with modern IT
infrastructure of an organisation.

2ASSESSMENT OF INTERNAL CONTROL WEAKNESS OF PLATINUM
Table of Contents
Overview of the Expenditure Process for special order.............................................................3
Level 0 data flow Diagram.........................................................................................................4
Identification..............................................................................................................................5
a. Internal control Weakness (ICW)...................................................................................5
b. Impact of ICW.................................................................................................................5
c. Specific Internal Controls...............................................................................................6
d. Flexibility of the recommended measures......................................................................8
Bibliography:..............................................................................................................................9

3ASSESSMENT OF INTERNAL CONTROL WEAKNESS OF PLATINUM
Overview of the Expenditure Process for special order
The head of the department forms a purchasing requisition and sent it to the
purchasing department which is then verified by one of the buyer out of five that the request
has been made by the department head. Post-verification the buyer selects appropriate vendor
and places a verbal order while demanding a price quotation. Then a “pre-numbered purchase
order (PNPO)” is processed and forwarded to different departments. On receiving the PNPO
the receiving department then validates the order and forward it along with the equipment to
the requisitioning depart while notifying the purchasing department. In the next step, the
accounts verify the vendor’s invoice and the PPNO and creates a payable check which is then
forwarded to the treasurer who verifies the demand and signs the check. The expenditure
process of the special orders from purchase to payment is thus completed.