H. Mickey Gill is the Accounts Payable manager for XYZ, Inc., a commercial factor specializing in purchasing the receivables of other companies. In this capacity, Gill is responsible for paying the company's expenses in a timely manner. The normal procedure is that the department receives invoices for bills to be paid which are subsequently attached to vouchers that are filled out and submitted by other members of the department who process the transactions. After meticulously checking the paperwork, Gill approves the vouchers by initialing them, and the department will cut the checks.

The company's check signing policy is as follows:

a)Checks between $1 and $50,000 are signed by the company's controller, Beth Wild.

b)Checks between $50,001 and $200,000 are signed by the company's chief financial officer, Susan Parrino.

c)Checks above $200,000 are signed by the company's president, Sandra Leger.

Each of the officers has a rubber stamp facsimile of her signature. In addition to enjoying a clandestine office affair with his recently divorced boss, Wild, the happily single Gill comes across information that Parrinokeeps her stamp on top of her desk at all times, in plain view. If he wanted to, how might he take advantage of the situation to help himself to company funds? Secondly, what controls would you, XYZ's external auditor, suggest to minimize the risk of exposure to the company? Be sure to explain the reasons for your answer.