Ajax Company is a large retail company that sells clothing, shoes, and other apparel. It has 40 retail outlets located in 22 states. All of the merchandise if purchased by a centralized procurement organization located at the companys corporate headquarters. There are six purchasing agents with each agent assigned to purchase different types of goods. Each agent works independently with suppliers to get the best deals for the company. The six agents report to the purchasing director. The director oversees all the activities of department and must approve all orders in excess of $100,000. Otherwise, each agent has authority to conclude his/her own deals. Based on the above:

1. Give an example of a preventive control that should be in place for this department and explain its objective. Give an example of a detective control and explain its objective. Be specific.