Strengths & Weaknesses
Test of Controls Audit Plan
Compensating Substantive Procedures
Purchase Requisition Supervision
The approval of a purchase requisition by a supervisor ensures that the employee has prepared it correctly.
Observation and verification. Select a purchase requisition and verify it has been approved by a supervisor.
Receiving Department's “Blacked-Out” Quantity Purchase Order
The “Blacked-Out” Quantity copy ensures the Receiving Department counts the items received correctly.
Observation and verification. Select an incoming order, complete a physical count of the items received, and compare the quantity with the receiving report.
Signature of Receiving Clerk
The required signature of the Receiving Clerk further ensures the items received are counted correctly because it holds him/her accountable.
Observation and verification. After completing the above test of controls (S-2), meet with the clerk who signed the receiving report.
Comparison of External Packing Slip with Internal Purchase Order
The comparison of the External Packing Slip with the Internal Purchase Order verifies the order.
Observation and verification. Select an incoming order and compare the Internal Purchase Order with the External Packing Slip.
Comparison of Disbursement Voucher with Voucher Package