As an internal auditor of Helmysha Sdn Bhd, Harini is required to perform an audit of activities within the purchasing department. The department employs 10 purchasing agents, two supervisors, a manager and a clerk. Purchases total about RM1.25 million a year. The audit disclosed the following scenarios: a) b) Purchasing agents select proposed sources without submitting the list of bidders for reviews. The audit test disclosed that no evidence of higher costs were incurred as a result of that practice. Purchasing agents who originate written requests for quotation from suppliers receive the supplier's bids directly from the mailroom. In the audit test of 100 purchases based on competitive bids, Harini found that, in 75 of 100 cases, the low bidders were awarded the purchase orders. Based on the scenarios, state the risk/threat incurred if both scenarios described is permitted to continue in the future. Identify potential internal control, if any, that Harini should recommend to prevent continuation of the scenarios described. Harini believes that of all risks, probably the most serious risk associated with the cash disbursement function is theft or misappropriation of funds. To strengthen the internal control procedures over cash disbursement, what should Harini suggest to the top management of purchasing department? Discuss any five (5) recommendations.