Ronald Ondeyko, CPA, is considering the LaSalle Company's internal controls over investments, long-term debt, and capital stock. System documentation was accomplished with a questionnaire and a narrative memorandum and, in conjunction with a transaction walk-through, revealed the following potential deficiencies in internal control:

a. The historical cost of all long-term debt exceeds company policies for debt to equity ratios.

b. The company entered into a long-term debt agreement requiring a 2 to 1 current ratio at year end, yet the current ratio when the agreement was signed was approximately 1.5 to 1.

c. Internally held securities have been misplaced occasionally, though in all cases the securities were recovered.

d. In an open letter to the board of directors, a group of shareholders criticized the company for investing in a domestic corporation alleged to have violated human rights in a foreign country.

e. Signatures on investment authorizations vary from the chairman of the board's investment committee to the treasurer and controller.

Required:

For each potential deficiency, indicate a control procedure or procedures that management could implement to reduce the likelihood of errors or frauds.