0.6 The management at MechDesign Industries recognizes that a well-designed internal control system provides many benefits. Among the benefits are reliable financial records that support decision making and a greater probability of detecting errors and preventing fraud. MechDesign Industries' internal auditing department periodically reviews the company's accounting records to determine the effectiveness of internal controls. In its latest review, the internal audit staff found the following eight conditions: 1. Many purchases were personally approved by the purchasing department manager and did not have a corresponding purchase requisition. 2. The prices of some raw materials purchased from a specific vendor are unusually high and this vendor is not on the preferred vendor list. 3. There was a sudden increase in backorders for recorded sales orders over the last two months. 4. Many purchase orders are recorded as being open. However, when the purchase order tracking is done, orders have been received. 5. There are many customers returns due to defective products. 6. Since cleaning materials are not part of the production stock, and the maintenance supervisor is responsible for the cleaning materials' requisitioning, he also orders and receives the cleaning materials. including to some of the functions that they do not currently perform. 8. The payroll director has been working in the company for about six years without taking a single day of leave. When the employee was unexpectedly hospitalized, fictitious employees were identified on the payroll by the director who had temporarily replaced the hospitalized employee. REQUIRED For each of the eight conditions detected by the company's internal audit staff: a. Identify a possible cause of the condition. b. Recommend controls and/or actions would correct the condition and prevent it from happening again