1. The following areerrors or fraud and other irregularities that have occurred inFresh Foods Grocery Store Ltd., a wholesale and retail grocerycompany.

   1. The incorrect pricewas used on sales invoices for billing shipments to customersbecause the incorrect price was entered into a computer file.

   2. A vendor’s invoice waspaid twice for the same shipment. The second payment arose becausethe vendor sent a duplicate copy of the original two weeks afterthe payment was due.

   3. Employees in thereceiving department stole some sides of beef. When a shipment ofmeat was received, the receiving department filled out a receivingreport and forwarded it to the accounting department for the amountof goods actually received. At that time, two sides of beef wereput in an employee’s pickup truck rather than in the storagefreezer.

   4. During the physicalcount of inventory of the retail grocery, one counter wrote downthe wrong description of several products and miscounted thequantity.

   5. A salesperson soldseveral hundred kilograms of lamb at a price below cost because shedid not know that the cost of lamb had increased in the pastweek.

   6. On the last day of theyear, a truckload of beef was set aside for shipment but was notshipped. Because it was still on hand, it was counted as inventory.The shipping document was dated the last day of the year, so it wasalso included as a current-year sale.

Required

1. For each error orfraud and other irregularity, identify one or more types ofcontrols that were absent.

2. For each error orfraud and other irregularity, identify the objectives that have notbeen met.

3. For each error orfraud and other irregularity, suggest a control to correct thedeficiency.