From time to time, one of the retail stores who are customers of OEDL contact a sales representative of OEDL to discuss getting a discount if they put through a larger than normal order. The current policy at OEDL is that the sales representatives can give a small discount of up to 5% when this happens but must get approval from a senior manager if the discount is to be any higher than 5%. On investigation, it is discovered that the policy is not being enforced and is not always being followed.

(a) Evaluate the current policy (ignoring the fact it is not being enforced and not always being followed). (4 marks)

(b) Identify a detective control that could be used to address the problem of the policy not being enforced and not always being followed and explain how it would work. (4 marks)

(c) Identify a preventive control that could be used to address the problem of the policy not being enforced and not always being followed and explain how it would work. (4 marks)

(d) Discuss the circumstances in which you would implement the detective control and not the preventive control.