1. Why would there be a tolerance level allowed between Purchase Order and Invoice? Explain your answer.

2. In regard to the EXCESSIVE CASH OUTFLOW:

a) Identify and describe ONE weakness in the process that could cause this. Identify and describe two risks that may materialise as a result of this weakness. Your answer should discuss how the weakness identified could impact the process/information quality goals. Discuss any impact on the financial statements.

b) What additional controls, or changes to the process, could management implement to reduce the excessive cash outflow issue? Explain how the control(s) minimize(s) the weakness identified.

c) Identify ONE performance measure (i.e., KPI) that could be used to evaluate the improvements after the introduction of the control (or process change) that you recommended in (b) d) Describe how the performance measure (KPI) selected in (c) above would be calculated (including what the target would be). Your answer should include what data is needed and where it would come from