Equipment acquisitions that are misclassified as maintenance expense most likely would be detected by an internal control that provides for:

(1) Segregation of duties of employees in the accounts payable department.

(2) Authorization by the board of directors of significant equipment acquisitions.

(3) Investigations of variances within a formal budgeting system.

(4) Independent verification of invoices for disbursements recorded as equipment acquisitions.

The following questions concern analytical procedures in the acquisition and payment cycle. Choose the best response for each.