Case Study-2 Last year the AMS Manufacturing Company purchased over $10 million worth of office equipment under its "special ordering system, with individual orders ranging from $5,000 to $30,000. Special orders are for low-volume items that have been included in a department manager's budget. The budget, which limits the types and dollar amounts of office equipment a department head can requisition, is approved at the beginning of the year by the board of directors. The special ordering system functions as follows: A purchase requisition form is prepared and sent to the purchasing department. Upon receiving a purchase requisition, one of the five purchasing agents (buyers) verifies that the requester is indeed a department head. The buyer next selects the appropriate supplier by searching the various catalogs on file. The buyer then phones the supplier, requests a price quote, and places a verbal order. A pre-numbered purchase order is processed, with the original sent to the supplier and copies to the department head, receiving and accounts payable. One copy is also filed in the open-requisition file. When the receiving department verbally informs the buyer that the item has been received, the purchase order is transferred from the open to the filled file. Once a month, the buyer reviews the unfilled file to follow up on open orders. The receiving department gets a copy of each purchase order. When equipment is received, that copy of the purchase order is stamped with the date and, if applicable, any differences between the quantity ordered and the quantity received are noted in red ink. The receiving clerk then forwards the stamped purchase order and equipment to the requisitioning department head and verbally notifies the purchasing department that the goods were received Upon receipt of a purchase order, the accounts payable clerk files it in the open purchase order file. When a vendor invoice is received, it is matched with the applicable purchase order, and a payable is created by debiting the requisitioning department's equipment account. Unpaid invoices are filed by due date. On the due date, a check is prepared and forwarded to the treasurer for signature. The invoice and purchase order are then filed by purchase order number in the paid invoice file. Checks received daily from the accounts payable department are sorted into two groups those over and those under $10,000. Checks for less than $10,000 are machine signed. The cashier maintains the check signature machine's key and signature plate and monitors its use. Both the cashier and the treasurer sign all checks over $10,000. Required: 1. Identify at least five activities (or sub-processes) within the expenditure process described above. (3 points) b. Identify five risks associated with the five activities identified on a. (5 points) c. Propose a control for each risk identified on b. (5 points) Note: Present your answer in a risk/control matrix reduced to only three-column table with these headings: Activity (or Sub-processes), Risks, and Controls. Formal criteria (2 point) Each group of students should post her paper on Blackboard before 05/11//2020 23:59 pm Use Cover page that contains (Case number, Instructor Name, Section, Students names and ID) Use A4 page size Set all margins at 2 cm. Use font Arial 12 and 1.5 line spacing. (Use Bold and 14 for titles) Paragraphs should be separated by a line space. Footer: Insert page number. Expert Answer a). The following are list of activities under the expenditure. Process is identified as follows: Expenditure: purchase of office eqipment worth $10 million of various products ranging from $5000 to $30000 departmental head sending requisition to the purchase department a) after receipt of requisition purchase department verifies the product availability with the suppliers and asks them to quote the price for the requested quantity i) after the prices are quoted the purchase department analyses the range of purchase prices quoted and the quality of the products and places the order verbally. ii) after placing the order tge supplier provides with copy of purchase order and which also sent to the departmental head. iv) after that the order is received by the receiving department wher quality testing and inspection is carried out v) later the products delivered are handed over to the stores from where the required department