John Wayne is a purchasing officer in DEF Manufacturing, a family-owned manufacturer of kitchen utensils and equipment. He started his employment six months ago, right after he completed his business degree. He is engaged and the planned wedding date is only two months away. His fianc, who is a daughter of a government minister, has planned for a lavish wedding ceremony. The total cost of the wedding is definitely too much for him to bear. Moreover, DEF Manufacturing is not paying him that much and the owners are more interested in accumulating their own wealth rather than caring for the employees' wellbeing. Recently, he was approached by a sales representative from ABC Steel, a metal and alloy supplier. ABC Steel is a new player in the market. The sales representative promised John Wayne that he will receive a certain commission for every purchase made to ABC Steel. John Wayne is aware that such arrangement is fraudulent. Evaluate THREE (3) factors that may encourage John Wayne to commit the fraudulent behaviour. Q1: Identify the internal control weakness in the following situations. For each situation, recommend a solution that will prevent or deter the fraud or error. (a) A finance officer prepared a fictitious invoice using his sister's name. The officer then prepared a cheque in payment of the invoice, which his sister later cashed. Your answer (b) A factory supervisor walked out of the warehouse with several raw materials * inventory items. He also recorded the items in the inventory ledger as issues to the manufacturing plant. (c) When receiving a shipment, an employee counted the quantity received and * compare it with the quantity ordered, as stated in the purchased order. She then realised that an extra box of skin cleanser was included in the shipment. The employee put the extra box aside and took it home after her shift ended. Your answer QUESTION 3 A purchasing officer created a bogus supplier, and then created fake invoices and supporting documents. These documents were then used to request payment from the company. This scheme has taken place for years and was not uncovered. (a) Discuss the red flag related to this fraud. * Your answer (b) Explain how the purchasing officer managed to commit the fraud without being detected