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For each deficiency, indicate a control reduce fraud/errors
1) Assume you are considering a client's controls over purchases and cash disbursements. System documentation was accomplished through flowcharts and narratives and, in conjunction with a transaction walkthrough, revealed the following potential deficiencies:
a. Costs of carrying inventory have increased significantly since the prior year.
b. Purchase prices are sometimes unusually high or fluctuate significantly from month to month.
c. Purchase discounts are frequently not taken.
d. During lunch, the controller commented to you that on two occasions during the year duplicate payments had been made for a single transaction.
e. Cash disbursements records do not always reconcile with general ledger control accounts.
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