Please select one sub-process in the Expenditure Cycle (e.g., purchasing, receiving or cash disbursements) to answer the following three questions:

1) What are the major financial audit risk exposures in this sub-process (list at least 5 audit risk exposures)?

2) What application controls can be put in place to mitigate the 5 risks you identified in Question #1 (you can cite the same application control more than once, if applicable).

3) Using online research, identify one company that experienced a breach in its Expenditure Cycle application controls in the last 5 years. Briefly describe the breach and how much it was estimated to cost the company.