Answer Threat 1. Purchase unneeded items 2. Inaccurate inventory 3. High prices for goods 4. Unauthorized suppliers Control Procedures (letters only) a. 2 signatures for material amounts b. block out quantities on PO; signatures, inventory counts c. compare Receiving Report to Invoice cl. compare Receiving Report and Purchase Order 5. Low quality goods e. data entry controls (or good form design), use of control accounts 6. Kickbacks f. ensure complete voucher package; cancel documents 7. Theft of goods g. match goods with an approved P.O. 8. Counting Mistakes h. performance evaluations 9. Accepting unordered goods i. perpetual inventory with periodic counts and reconciliation, RFIDs 10. Errors on vendor invoices j. Perpetual inventory, separate purchasing department, approvals of ROS 11. Mistakes in recording k. price lists, bids, reviews, budgets 12. Fraudulent disbursements 13. Duplicate payments 14. Missing a purchase discount 15. Payment for goods not received I. proper ling m. restrict access to cash, sequentially numbered checks n. review P.O.s, readonly supplier list 0. secure location, document all transfers, segregate dues 16. Theft of cash/checks p. training, job rotation