AtHutchingsonCompany, checks are notprenumberedbecause both the purchasing agent and the treasurerare authorized to issue checks. Each signer has accesstounissuedchecks kept in an unlocked file cabinet. Thepurchasing agent pays all bills pertaining to goodspurchased for resale. Prior to payment, the purchasingagent determines that the goods have been receivedand verifies the mathematical accuracy of the vendor'sinvoice. After payment, the invoice is filed by thevendor, and the purchasing agent records the paymentin the cash disbursements journal. The treasurer paysall other bills following approval by authorizedemployees. After payment, the treasurer stamps all billsPAID, files them by payment date, and records thechecks in the cash disbursements journal.HutchingsonCompany maintains one checking account that is reconciled by the treasurer

• What control activity is being violated?
• How could this allow an opportunity for fraud?
• What should they do correct the problem?