Using the Format Illustrated in the Text, Create a Risk/control

question 3

Essay

Using the format illustrated in the text, create a risk/control matrix for PTW Corporation's acquisition/payment process.The matrix should have three entries.PTW Corporation sells computer peripherals and related devices, such as printers, ink, flash drives and cables.PTW has a staff of three purchasing agents, each of whom is in charge of a specific set of inventory items.Each purchasing agent uses his/her discretion in making decisions about when to order inventory, how much inventory to order and which vendor to purchase from.When ordered inventory arrives at PTW, one of two receiving clerks matches the items, quantities and vendors against a copy of the purchase order, then either stocks the merchandise on the shelves or puts it in the storeroom.PTW's accountant receives a copy of the invoice from the vendor, as well as an e-mail from one of the receiving clerks indicating that merchandise has been received.The e-mail also includes the relevant purchase order number.The accountant files the invoice by date in a filing cabinet; once a week, the accountant removes invoices from the filing cabinet and pays them by check.To cut down on clutter in the office, the accountant shreds the vendor invoice after the check has been paid by the bank.The accountant also completes a bank reconciliation within two weeks of receiving the bank statement in the mail.

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Definitions:

Blood Vessels

Tubular structures that carry blood throughout the body, including arteries, veins, and capillaries.

Control Headquarters

The central or main location from which control is exercised, especially in operations that require coordination such as emergency response, military, or corporate operations.

The Brain

The central organ of the nervous system, located in the skull, responsible for complex functions including thought, emotion, and coordination.

Visual Impulses

Electrical signals generated by the retina in response to light, which are transmitted to the brain for visual interpretation.