What internal control or procedure(s) would provide protection against the following threats? A purchasing agent orders materials from a supplier that he partially owns Receiving-department steal inventory and then claim the inventory was sent to the warehouse. An unordered supply of laser printer paper delivered to the office is accepted and paid for because the “price is right.” After all of the laser printers are jammed, however, it becomes obvious that the “bargain” paper is of inferior quality.

Question 3

What internal control or procedure(s) would provide protection against the following threats?

1. A purchasing agent orders materials from a supplier that he partially owns
2. Receiving-department steal inventory and then claim the inventory was sent to the warehouse.
3. An unordered supply of laser printer paper delivered to the office is accepted and paid for because the “price is right.” After all of the laser printers are jammed, however, it becomes obvious that the “bargain” paper is of inferior quality.
4. The company fails to take advantage of a 1% discount for promptly paying a vendor invoice
5. Inventory records show that an adequate supply of copy paper should be in stock, but none is available on the supply shelf