The risk involved may be that the company is paying for the liabilities for the orders that were not purchased, received, or used, or maybe the payment amount involved is too high to the vendor who is someone related to the clerk.

The internal control should be imposed to perform a step by step procedure to match the purchase order, receiving the report and invoice to vouch that the liability is justifiable, stated correctly, and charged correctly.

Week 5 Leon Jones worked in the warehouse of a large building supply company. One day he unexpected left for Fiji, never to return. His supervisor seized the opportunity to continue submit time cards for Leon to the payroll department. Each week, as part of his normal duties, the supervisor received the employee pay cheques from payroll and distribute them to the workers on his shift. As Leon was not present to collect his pay cheque, the supervisor forged Leon's name and cashed it. Required: Describe two control techniques to prevent or detect this fraud scheme.