Lisa curtis is documenting the purchasing and cash payments processes at hardies wholesaling. Hardies wholesaling imports garden and landscaping items such as pots, furniture, foundries and sculpture from suppliers in South-East Asia. All items are non-perishable and made from material such as stone, concrete, metal and wood and are distributed to retailers throughout the country.

Purchases are denominated in US dollars, which the company acquires under forward contracts. The purchasing department initiates a purchase order when stock levels reach that point or sales staff notify the department of large customer orders that need to be filled. The purchase order is approved and sent to suppliers selected from an approved suppliers list. Goods are transported from South-East Asia by ship and are delivered by truck to native wholesaling central warehouse. A receiving report is generated by the receiving department are forwarded to the accounts department for matching with the copy of the original purchase and supplier's invoice. When the package of documents is completed the purchase order the invoice are entered into the general ledger. The Cash payments department raises a voucher request payment of the invoice according to the supplier's payment terms. The Payment is approved and cash payment is made.

Required

(A)   Create a flowchart or logic diagram to represent the flow of transactions from the purchase order to cash payment.

(B)   Which duties in the above process should be segregated?

Discuss the implications of the sales bonus system for the control environment special factors would management have to have to consider?