Which internal control procedure(s) would best prevent or detect the following threats? a. A company has developed

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Which internal control procedure(s) would best prevent or detect the following threats?

a. A company has developed a unique product that is rather complex to manufacture and that contains a large number unique components, but its manufacturing is a tedious, time-consuming process.

b. The production employee requested additional raw materials not indicated on the bill of materials and asked the  control clerk to immediately send over the raw materials without waiting for the proper documentation, claiming that the production run was halted as there was a shortage of those raw materials.

c. A compressor used in production malfunctioned and caused a fire on the production line.

d. The quantities indicated on the materials requisition and the move tickets of raw materials for transfers to the factory were indicated as 3% more than required and the excess arriving at the factory was then sold privately.

e. An engineer accessed the inventory records from the engineering department to update them.

f. Physical work-in-progress inventory counts did not match the records in the production information system.

g. A move ticket was completed by a production employee to illegally obtain raw materials from the storeroom.

h. A staff member in production sent the exact steps for manufacturing a novel item to the production engineer via email, but somehow this information made its way onto a social media platform.

i. An employee entered part number 589974 instead of part number 589947 as being used in the production of a specific item.

j. Expensive equipment required for the production of a new item was purchased directly out of a departmental budget.

k. A fast-fashion clothing manufacturer was forced into having an end-of-season sale to move large quantities of excess stock from its inventory to improve its cash flow.

l. A company developed a new product and required several new staff members to man its production line. Planning was ahead of schedule and it was possible to start production earlier than anticipated. Despite proper planning, there was clear evidence of poor performance on some areas of the production line.

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Accounting Information Systems

ISBN: 9781292353364

15th Global Edition

Authors: Marshall B. Romney, Paul J. Steinbart

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