Flow Chart

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Financial Audit – Case Study
Designing a flow chart

PART 1 – Cycle of purchases – to be discussed in class

The storekeeper is in charge with the monitoring of the availability of raw material in warehouses. When falling below a critical level, he sends a requisition to the purchase department with a copy to the receiving clerk

If the order has a value of less than 10.000 € and it can be addressed to a usual supplier (list of usual suppliers is established and updated by the director of the purchase department), the order is passed immediately by the assistant in charge in the purchase department. If the order has a value of more than 10.000 € or if it is addressed to a supplier which is not on the list of usual suppliers, the director of the purchase department must either amend the list of usual suppliers or deliver a written authorisation valid only for this order.

When the order can be executed, a purchase order is created in 4 paper copies which are circulated as follows: 1. to the supplier
2. to the receiving clerk
3. to the accounting department
4. filed in the purchase department

(Part 2 next page)

Financial Audit – Case Study
Designing a flow chart

PART 2 - Cycle of sales – To be prepared after the class and posted on Lola

The salesman prepares a delivery slip in three paper copies
1. for the customer
2. for the casher
3. filed by the salesman

When the sale is paid cash, the customer gives his copy to the casher when paying. The casher mark the copy as “Paid” and gives it back to the customer who will give the copy to the storekeeper who will give him the purchased goods. If the client requests an invoice, it is electronically produced by the casher with copies circulated as follows:

1. to the client
2. to the accounting department
3. filed by the casher

In a credit sale, the customer must obtain a credit from the Sales Department. The Sales Department must then...
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