P 5-4. FLOWCHART ANALYSIS
Examine the diagram for Problem 4 and indicate any incorrect iniaon and/or transfer of
documentaon. What problems could this cause?
The purchase requisition should originate from the inventory control department after
the employee reviewed the records to determine if and how much of an inventory item
needs to be ordered. If purchasing agents are allowed to authorize purchase
requisitions, they might be tempted to buy items not needed in order to get some
benefits or kickbacks from the vendor and this is considered as fraud. The purchase
order that is sent to receiving is not said to be a blind copy, and this might cause
