Inventories must be reported on the balance sheet at the lower of cost or market value. (1) What is the meaning of "market value"? (2) What effect does using the lower of cost or market value have on the income statement? (3) What future uncertainty are we trying to be conservative about with this lower of cost or market rule? Smith is a manager at Marsh Corporation. Smith has an uncle who provides repair services on machines. Smith asked the purchasing manager to put his uncle on a list of approved vendors--Smith did not disclose his relationship to his uncle to the purchasing manager. Smith submits requests for repairs on machines In his department and request that his uncle perform the services. The uncle then sends a bill to the Accounting Department for payment. The Accounting Department calls Smith to verify that the services were actually performed and then makes the payment to Smith's uncle. Marsh Corporation recently discovered that Smith was submitting requests for repairs that were not needed and that Smith's uncle did not actually perform any services, but simply submitted fraudulent invoices for payment (Smith would tell the accounting department the repairs had been performed and the invoices would be paid). Identify three internal control weaknesses and how they could be corrected