Lilans working papers for evaluating a clients internal controls include the following notes: There were over 1,000 purchase transactions under $4,500 from four vendors; these are routine purchases. All purchases over $4,500 are non-routine transactions and must be pre-approved by the purchasing manager, but one purchase for $15,000 was authorized by the plant manager without the purchasing managers initials. All cheque stubs for purchases should have purchase order numbers recorded, but 5% of the sample did not have the purchase order number recorded traced the 5% to August payments.

For each of the notes above answer the following questions: A. Does it represent a possible control problem? B. If yes, why does it represent a possible control problem? C. If no, why is it not a potential control problem?