Analyze the Following Narrative

question 11

Essay

Analyze the following narrative.Identify five risk exposures PTW faces in its acquisition/payment process; for each exposure, recommend two internal controls.PTW Corporation sells computer peripherals and related devices, such as printers, ink, flash drives and cables.PTW has a staff of three purchasing agents, each of whom is in charge of a specific set of inventory items.Each purchasing agent uses his/her discretion in making decisions about when to order inventory, how much inventory to order and which vendor to purchase from.When ordered inventory arrives at PTW, one of two receiving clerks matches the items, quantities and vendors against a copy of the purchase order, then either stocks the merchandise on the shelves or puts it in the storeroom.PTW's accountant receives a copy of the invoice from the vendor, as well as an e-mail from one of the receiving clerks indicating that merchandise has been received.The e-mail also includes the relevant purchase order number.The accountant files the invoice by date in a filing cabinet; once a week, the accountant removes invoices from the filing cabinet and pays them by check.To cut down on clutter in the office, the accountant shreds the vendor invoice after the check has been paid by the bank.The accountant also completes a bank reconciliation within two weeks of receiving the bank statement in the mail.

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Definitions:

Circulatory Function

The role or process of circulating blood and lymph through the body, facilitated by the heart and blood vessels, to transport nutrients and remove waste.

Case Study Research

A research method involving an up-close, in-depth, and detailed examination of a subject of study and its related contextual conditions.

Descriptive Research

A type of research that aims to observe, describe, and document aspects of a situation as it naturally occurs.

Psychologists

Professionals in the field of psychology who study mental processes and behavior, and may provide counseling or therapy.