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In the audit of Babcock Ltd you establish that the company buyer, Brent Short, is responsible for placing orders with suppliers. Brent has worked for the company since its inception and thus management believe that he does not require prior authorisation for purchase decisions. He bases decisions on which items and quantities to procure on an Excel spreadsheet, on which he tracks his orders and the quantities previously ordered as well as details of supplier promotional sales and special offers.
Required:
Problem 1: Identify two internal control weaknesses and explain the potential impact of these weaknesses on Peacock Ltd, i.e. explain what could go wrong (WCGW).
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