Expenditure Cycle - Threats/Controls Match the threats in the first column to the appropriate control procedure in the second column (only one match for each answer and each control is used only once). Answer Threat Control Procedures (letters only) 1. Purchase unneeded items a. 2 signatures for material amounts 2. Inaccurate inventory b. block out quantities on P.O., signatures, inventory counts 3. High prices for goods C. compare Receiving Report to Invoice 4. Unauthorized suppliers d. compare to Receiving Report and Purchase Order 5. Low quality goods e. data entry controls (or good form design), use of control accounts f. ensure complete voucher package; cancel documents 6. Kickbacks 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 j. Perpetual inventory, separate purchasing department, approvals of P.O.s 10. Errors on vendor invoices 11. Mistakes in recording k. price lists, bids, reviews, budgets 12. Fraudulent disbursements I. proper filing 13. Duplicate payments m. restrict access to cash, sequentially numbered checks 14. Missing a purchase discount n. review P.O.s, read-only supplier list 15. Payment for goods not received o. secure location, document all transfers, segregate duties 16. Theft of cash/checks p. training, job rotation