5 BFA221 Accounting Information Systems Question 4 Describe the internal control procedure that would be most cost-effective in dealing with the following revenue cycle or expenditure cycle or payroll cycle threats: a. A purchasing agent orders materials from a supplier that he partially owns. b. The company fails to take advantage of a 1% discount for promptly paying a vendor c. d. e. f. g h i. invoice. A fictitious employee payroll record was added to the payroll master file. The organisation was fined for making a late quarterly PAYG payment to the Tax Office. An unordered supply of laser printer paper delivered to the office is accepted and paid for because the 'price is right'. After all of the laser printers are jammed it becomes obvious that the 'bargain paper' is of inferior quality. An employee writes off a customer's accounts receivable balance as uncollectible to conceal the theft of subsequent cash payments from that customer. A business experiences unauthorised disclosure of the buying habits of several well- known customers. Customer's credit card numbers are intercepted and stolen while being sent to the company's website. Some timecards were lost during payroll preparation; consequently, when pay cheques were distributed, several employees complained about not being paid. Receiving-dock personnel steal inventory and then claim the inventory was sent to the warehouse. [10x 2 marks 20 marks] [Total 20 marks]