Page 70 - CA Final PARAM Digital Book.
P. 70
In the given situation, information system requires booking of purchases in purchase ledger and stock
records from date of invoice. Such a control system is likely to present a distorted picture of stocks of the
company. It would show stocks of raw material as received whereas these goods could be in transit.
Therefore, design of the control itself is faulty which allows booking from date of purchase invoice only.
Further, such a system can have implications with respect to GST laws.
The internal auditor should report above matter asking management for corrective action.
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