Question 4 - Internal Control a. Why should an internal control system be monitored over time? (4 marks) b. The following are misstatements that have occurred in Expire Supermarket Company Limited, a retail and wholesale grocery company: 1. The incorrect price was used on sales invoices for billing shipments to customers because the wrong price was entered into the computer master file of prices. 2. A vendor invoice was paid even though no merchandise was ever received. The accounts payable software application does not require the input of a valid receiving report number before payment can be made. 3. Employees in the receiving department took sides of beef for their personal use. When a shipment of meat was received, the receiving department filled out a receiving report and forwarded it to the accounting department for amount of goods actually received. At that time, two sides of beef were put in an employee's pickup truck rather than in the storage freezer. 4. During the physical inventory count or the retail grocery, one counter wrote down the wrong descriptions of several products and miscounted the quantities. 5. A salesperson sold an entire car load of lamb at a price below cost because she did not know the cost of lamb had increased in the past week. 6. A vendor's invoice was paid twice for the same shipment. The second payment arose because the vendor sent a duplicate copy of the original two weeks after payment was due. 7. On the last day of the year, a truckload of beef was set aside for shipment but was not shipped. Because it was still on hand the inventory was counted. The shipping document was dated the last day of the year, so it was also included as a current-year sale. 8. An accounts payable clerk processed payment to himself by adding a fictitious vendor address to the approved vendor Masterfile. Required i. For each misstatement, suggest one control to correct the deficiency. (8 marks) ii. For each misstatement, identify one relevant transaction-related assertion that has not been met. (8 marks)