CS Professional · Internal and Forensic Audit · Internal Audit Tools and Techniques
An internal auditor at Bharat Textiles Ltd wants a visual, step-by-step picture of how a purchase order moves from requisition to payment, so that missing approval points and duplicated steps can be spotted at a glance. Which tool is best suited to this purpose?
A flowchart of the procurement process is the best tool. It shows each step, document and decision point from requisition to payment in sequence, so the auditor can quickly see missing approvals, duplicated steps and weak control points in the process.
- AA flowchart of the procurement processCorrect
- BA statistical sampling table
- CA bank reconciliation statement
- DA trial balance
Explanation
A flowchart graphically depicts the sequence of activities, documents and decision points in a process. This makes control gaps such as missing approvals or redundant steps visible quickly. The other options are accounting or sampling devices that do not map a process flow.
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