PROBLEMS/ESSAYS (5 points each) How is EDI more than technology? What unique control problems may it pose? What makes point-of-sale systems different from revenue cycles of manufacturing firms? Give three examples of Access Control in a Point-of-Sale (POS) system. The Soap Manufacturing Company has three employees who work in the warehouse. All of the warehouse workers are authorized to order inventory when it falls below the reorder level. The workers complete a purchase order and mail it to the supplier of their choice. The inventory is delivered directly to the warehouse. The workers send a memo to accounts payable reporting the receipt of inventory. Accounts payable compares the warehouse memo to the supplier’s invoice. Accounts payable prepares a check which the treasurer signs. Describe at least five needed internal control improvements. 54.The Jones Company makes custom golf clubs. The manufacturing supervisor interviews people who have specialized manufacturing skills, and he informs payroll when an employee is hired. The employees use a time clock to record the hours they work. The employees are also required to keep a record of the time they spend working on each order. The supervisor approves all time cards. The accountant analyzes the job tickets and prepares a labor distribution summary. Payroll prepares the payroll register and paychecks. The supervisor distributes the paychecks to the employees. Payroll informs cash disbursement of the funds required to cover the entire payroll amount. The cash disbursements clerk ensures that there are adequate funds in the company’s regular checking account to cover the payroll. Describe at least three internal control weaknesses; for each weakness, suggest an improvement to internal control. Explain why collusion between employees and management in the commission of a fraud is difficult to both prevent and detect. Give an example of such a potential fraud.