Your risk assessment of Meteor Ltds business processes indicates that there is a risk that payments to suppliers are made prior to goods being received. As part of your examination of the information system and related control activities, you note that the following process is in place in relation to payments: 1. A pre-numbered cheque request is prepared for all payments. 2. The details on the suppliers invoice are matched to the appropriate receiving report. 3. The details on the suppliers invoice and receiving report are matched to an authorized purchase order. 4. The cheque requisition is stapled to the authorized purchase order, receiving report, and suppliers invoice and forwarded to the appropriate senior staff member for review and authorization. 5. The authorized cheque requisition and supporting documents, is passed to accounts payable for payment.

REQUIRED: 1. Identify one preventive internal control that directly addresses the risk of payments made to suppliers before the goods are received. Explain the effectiveness of the preventive control identified in response to question 10 above. [3 marks] 2. Design and describe in detail an appropriate test of control that you would use to satisfy yourself about the effectiveness of this internal control. [5 marks]