Listed below are 12 process failures that indicate weaknesses in control.

Process Failures

1. A cash disbursements event was updated on the wrong record in the accounts payable master data because the data entry clerk transposed digits in the vendor identification number

2. Several scanned invoice documents were lost and did not get recorded.

3. The amount of a cash disbursement event was erroneous, resulting in a negative balance in the accounts payable master data.

4. Supplies were purchased from a vendor found on an auction site. The supplies arrived late, and were of poor quality.

5. A purchasing agent ordered unneeded inventory items from a supplier company of which he is one of the officers.

6. The total shown on a vendor's invoice was greater than the sum of the invoice details, resulting in an overpayment to the vendor.

7. The vendor invoiced for goods that were never delivered. The invoice was paid in its full amount.

8. The vendor shipped goods that were never ordered. The invoice for those goods was paid.

9. The unit prices the vendor charged were in excess of those that had been negotiated. The invoice rendered by the vendor was paid.

10. Goods were stolen by storeroom personnel. When the shortage was discovered, the storeroom personnel claimed that the goods had never been delivered to them from the receiving department.

11. A vendor submitted an invoice in duplicate. The invoice got paid twice.

12. Because of several miscellaneous errors occurring over a number of years, the total of the outstanding vendor payable balances shows a large discrepancy from the balance reflected in the general ledger.

REQUIRED: List the numbers 1 through 12 on your solution sheet. For each of the 12 process failures described above, provide a two- to three-sentence description of the control plan that you believe would best address that deficiency.

Obviously, there could be more than one plan for a particular situation. However, select only one plan for each of the 12 process failures and include in your description a justification of why you believe it is best. When in doubt, opt for the plan that is preventive in nature, as opposed to plans that are detective or corrective.