Match the threats in the left column to appropriate control procedures in the right column...

Threat

Control Procedure

_____ 1. Failing to take available purchase discounts for prompt payment

a. Accept only deliveries for which an approved purchase order exists.

_____ 2. Recording and posting errors in accounts payable

b. Document all transfers of inventory.

_____ 3. Paying for items not received

c. Restrict physical access to inventory.

_____ 4. Kickbacks

d. File invoices by due date.

_____ 5. Theft of inventory

e. Maintain a cash budget.

_____ 6. Paying the same invoice twice

f. Conduct an automated comparison of total change in cash to total changes in accounts payable.

_____ 7. Stockouts

g. Adopt a perpetual inventory system

_____ 8. Purchasing items at inflated prices

h. Require purchasing agents to disclose financial or personal interests in suppliers.

_____ 9. Misappropriation of cash

i. Require purchases to be made only from approved suppliers.

_____ 10. Purchasing goods of inferior quality

j. Restrict access to the supplier master data.

_____ 11. Wasted time and cost of returning unordered merchandise to suppliers

k. Restrict access to blank checks.

_____ 12. Accidental loss of purchasing data

l. Issue checks only for complete voucher packages (receiving report, supplier invoice, and purchase order).

_____ 13. Disclosure of sensitive supplier information (e.g., banking data)

m. Cancel or mark “Paid” supporting documents in voucher package when check is issued.

n. Carry out a regular backup of expenditure cycle database.

o. Train employees in how to properly respond to gifts or incentives offered by suppliers.

p. Hold purchasing managers responsible for costs of scrap and rework.

q. Ensure that someone other than the cashier reconciles bank accounts.