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Question no. 1 ' Which internal control procedure would be most cost-effective in dealing with the following expenditure cycle threats? a} A purchasing agent orders

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Question no. 1 ' Which internal control procedure would be most cost-effective in dealing with the following expenditure cycle threats? a} A purchasing agent orders materials from a supplier he partially owns. b) Receiving-dock personnel steal inventory and then claim the inventory was sent to the warehouse. c) An unordered suppiy of iaser printer paper deiivered to the office is accepted and paid for because the \"price is right.\" After all of the laser printers arejam med, however, it becomes obvious the \"bargain" paper is ofinferior quality. d} The company fails to take advantage of a 1% discount for promptly paying a vendor invoice. e} A company is late in paying a particular invoice. Consequently, a second invoice is sent, which crosses the first invoice's payment in the mail. The second invoice is submitted for processing and paid. 1'} Inventory records show an adequate supply of copy paper should be in stock, but none is available on the supply shelf. g) The inventory records are incorrectly updated when a receiving-dock employee enters the wrong product number at the terminal- h} A clerical employee obtains a blank check and writes a large amount payable to a fictitious company. The employee then cashes the check. i) A fictitious invoice is received and a check is issued to pay for goods never ordered or delivered. j) The petty cash custodian confesses to having "borrowed\" $12,000 over the last five years. k) A purchasing agent adds a new record to the supplier master file. The company does not exist. Subsequently, the purchasing agent submits invoices from the fake company for various cleaning services. The invoices are paid. I) A clerk affixes a price tag intended for a low-end flat-panel TV to a top-of-the-line model. The clerk's friend then purchases that item, which the clerk scans at the checkout counter. m) A receiving dock employee notices a delivery has four cases of iPads but the purchase order only requested three cases, so the employee set aside the fourth box and took it home. n} A purchasing agent regularly orders from particular suppliers who pay the employee kickbacks in order to win orders. n. Incl-inn nn '3

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