Purchases and Payables (aka Acquisition & Payables) Cycle Case Darren Designs Ltd (Darren) is a small manufacturer of costume jewellery, including bracelets, necklaces, earrings and other moderately priced accessories. Most of their products are made from silver, various low-cost stones, beads and other decorative jewellery pieces. Darren's is not involved in the manufacturing of high-end jewellery items such as those made from gold and semi-precious or precious stones. Personnel responsible for purchasing raw material jewellery items for Darren would like to place orders directly with supplier who offer their products for sales through websites. Most suppliers provide pictures of all jewellery components on their websites along with pricing and other sales-term information. Customers who have valid business licenses are able to purchase the products at wholesale prices, rather than retail prices. Customers can place orders online and pay for those goods immediately by using a valid credit card. Purchases made by credit card are shipped by the suppliers after the credit approval is received from the credit card agency, which usually occurs the same day. Customers can also place orders online with payment being made later by cheque. However, in that event, purchases are not shipped until the cheque is received and cashed by the supplier. Some of the suppliers allow a 30-day, full payment refund policy, whereas other suppliers accept returns but only grant credit towards future purchases from that supplier. Required a) Identify advantages for Darren designs if management allows purchasing personnel to order goods online through supplier websites. b) Identify potential risks associated with Darren Design's purchase of jewellery pieces through supplier websites. c) Describe advantages of allowing purchasing agents to purchase products online using a Darren Design's credit card. d) Describe advantages of allowing purchasing agents to purchase products online with payments made by cheque. e) What internal controls can be implemented to ensure that: i. Purchase agents do not use Darren's credit cards to purchase non-jewellery items for their own purposes, if Darren allows them to use the company's credit card? ii. Purchasing agents do not order jewellery items from the supplier and ship those items to addresses other than Darren's addresses? Darren does not end up with unused credits with jewellery suppliers as a result of returning unacceptable jewellery items to suppliers that only grant credit towards future purchases?