Business rules implement internal controls. Please review Table 6.1 in your text. Describe which business rules implement segregation of duties, and identify whether they are obligatory, prohibited, or allowed.

Process Steps	Intention	Employee Authority/ Action	Access Controls	Application Controls
Place Order	Order products from reliable suppliers at the best available prices to meet required delivery time.	Manager approval required for orders >$5,000; employee ordering products must not manage inventory.	Employee preparing purchase orders cannot modify product inventory records, receive items, or pay suppliers.	System must provide purchase order number control, default values, and range and limit checks and must create an audit trail.
Receive Items	Record receipt of items promptly and accurately.	Employee receiving items must not be same employee who ordered the items.	Employee receiving items cannot modify purchase orders or inventory records; they cannot view purchase order quantity ordered information.	System must only allow employee to enter the number of items received, subject to range and limit checks on quantities received; date of receipt defaults to current date.
Assess Items	Reject defective items; record acceptance promptly and accurately.	Employee assessing items must not be same employee who ordered the items.	Employee assessing items cannot modify purchase orders or inventory records.	System must only allow employee to record the assessment; date of assessment defaults to current date.
Place in Inventory	Place accepted items inproper inventory locations promptly.	Employee placing the items in inventory must not be same employee who ordered the items.	Employee placing items in inventory cannot modify purchase orders.	System must specify where items are to be placed.
Send Items Back	Return defective items tosuppliers promptly.	Manager approval required for defective items return.	Employee returning items cannot modify supplier information.	System must supply supplier return address.
Pay Supplier	Pay suppliers accurately, taking cost-effective discount terms.	Employee makingpayment must not be employee who ordered items or received/ accepted items.	Employee makingpayments cannot modify purchase orders and receipt/ acceptance records.	System must supplysupplier payment information and amount of payment; payment date defaults to current date.
TABLE 6.1 Using Business Rules to Implement Internal Controls