144-3 A summary of the controls for the acquistion cycle of Keystone Computers & Networks, Inc., appears on pages 602-503. Required: a. For the following three controis ower the acqusition cycle, indicate one type of error or fraud that the control serves to prevent or detect Organize your solution as folows 1. Computer matches information from vendors' invoice wth purchase order and receving data 2. The computer numbers to receiving reports. 3. Checks are maled by check signer b. For each of the contrels described above, ind cate how the audeors could test the control. Organize your answer as folows: Tests of Controls Computer matches information from vendors invgice with purchase order and receving data. 2. The comouter sssigns numbers to receiving 3. Checks ane maied by the check signer t4A-2 As ind cated on the conrul rsk assessment warking paper on page 602, the audtors rtentefsed two weaknesses in ntermal control over the acquiseion cytle d KCN. Devcribe the mplcations of each of the twe weaknesses in terms of the type of errors or fraud that could result Pu. 602 :. Approved vendors are selected by Moderate Risk due to valuation and purchasing manager who also purcheses goods. 2. Vendors statements are not Reconoled to the accounting records. Moderate Risk ae to Valuation and Accuracy. Low risk due to Existence or occurrence, Moderate Risk due to Completeness