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The following are three independent scenarios: 1. The company's payroll is computerized and is handled by the payroll clerk who is responsible for entering all weekly time reports into the system. The payroll system is password protected so that only the payroll clerk can change pay rates or add/delete company personnel to the payroll file. Payroll cheques are prepared weekly and the payroll clerk batches the cheques by supervisor or department head for subsequent distribution to the employees. 2. Nick's Diner is a small family-owned restaurant in a northern resort area whose employees are trusted. When the restaurant is very busy, any of the wait staff has the ability to operate the cash register and collect the amounts due from the customer. All orders are recorded by the wait staff on "tickets". Although there is a place on each ticket to indicate the waiter or waitress responsible for the order, most do not bother to do so, nor does management reconcile the orders and amounts with total cash receipts for the day. 3. Mountain Equipment Store takes customer orders via a toll-free phone number. The order taker sits at a terminal and has complete access to the customer's previous credit history, credit limit and a list of inventory available for sale. The order clerk has the ability to input all the customer's requests and generate a sales invoice and shipment for all orders within the customer credit limit. Additional supervisory review or approval is required for all sales exceeding the customer credit limit. Required: For each of the above situations, ovaluate the controls implemented by the company and indicate the following (a) Any deficiency in the controls described. (Indicate none if no deficiency is present) (b) The potential errors or irregularities that might occur because of the inadequate controls. (c) Compensating, or other, controls that might mitigate the potential misstatements

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