QUESTION 2:

Sandy examines transactions in the Expenditure Cycle. She notes the following scenarios.

D. Department managers have access to blank purchase orders and use them to buy items needed in their respective departments. While a list of "suggested vendors" is available, managers are free to order from whom they wish. The manager enters the vendor name, part-number, and its price on the P.O. and sends it to the vendor, Accounts Payable, and Purchasing.

E. Accounts Payable is responsible for making a copy of the P.O. and sending it to the Receiving Department. When the material is received, the receiving personnel review the P.O. for quantity ordered.A receiving ticket is written and sent to Accounts Payable. Any discrepancies (e.g. receiving more than was ordered) are sent to Purchasing in an email.

F. Accounts Payable compares the receiving ticket, the purchase order, and the vendor invoice for agreement. If all three documents agree, Accounts Payable issues a check to the vendor. Documents used in this process are filed away in a file cabinet.

G. Accounts Payable reconciles the bank statement for the general account and has noticed that several payments cleared for amounts greater than those originally written on the checks.

Required: list the internal control threats in the above scenarios and list the internal controls that would prevent and/or detect the threat. be specific as to the nature of the control; for example, "segregation of duties" is not acceptable. you need to specify what duties need to be separate. Also, you need other controls besides segregation of duties; use this control only once. Identify the control if it is an input edit control by placing a "Y" in the input edit" column. Organize your answer as follows:

LETTERTHREAT INTERNAL CONTROLINPUT EDIT CONTROL(S) (Y/N)