In your audit of Faye Co., management gives you the following (partial) list of internal controls over accounts payable:

- The check approving and preparation duties are performed by separate individuals.

- Checks of more than \(\$ 1,000\) require the treasurer's signature whereas those for less are produced mechanically using a signature plate stored in the treasurer's safe.

- Before a check is prepared, the purchase order/check request is matched against the invoice.

- Control totals from the check register are compared to those from the cash disbursements journal after every batch of transactions is completed.

- Management maintains a master vendor list. No check may be written to a vendor not on the list without approval from the controller.

- All disbursement accounts are independently reconciled with exceptions followed up promptly.

- Faye Co. uses hash totals to ensure that expenditures are charged to the proper accounts.
- All checks and purchase orders are prenumbered.

In your test of controls, you find the following:

a. Upon vouching some of the canceled checks with their supporting documents, you find that one \(\$ 1,800\) check matches the invoice amount but is \(\$ 100\) more than the purchase order listed.

b. A large number of the checks were written to vendors who required special approval as they were not on the approved list.

c. Four checks written for more than \(\$ 1,000\) did not carry the treasurer's signature. All were written for less than \(\$ 1,500\), and no other problems were identified.

d. One invoice had been paid twice.

e. Two checks were missing from the listing of checks cleared. Upon investigation, they were found to have been destroyed in the check-writing machine.

f. One expenditure was posted to the wrong expense account.

For each of the above:

1. State which management assertions are in question.

2. Discuss whether you believe that an ineffective control represents a significant deficiency or material weakness.

3. Discuss the ramifications of the items for an assessment of control risk for this function.

4. When applicable, suggest a more effective control.