SOLUTION: ACCT 402 Saudi Electronic University Production Threats Research Paper

Attached. Please let me know if you have any questions or need revisions.Running head: PRODUCTION1Production ThreatsNameInstitutionDatePRODUCTION2Questionsa) Purchasing at inflated prices: this is a threat that occurs due to fraud on the part of thesupplier. For instance, a vendor who supplies meat products at a supermarket yet lacks properpricing lists. To control this risk, an organization should use a price list and compare theirprices against the supplier’s list (B Romney, 2018). Also, a form can allow competitive biddingto get the best of the price out of the winning bid. Finally, mitigation to the above risk wouldbe to have a budget and make a proper review of all purchasing orders.b) Unreliable Suppliers: this is a production cycle threat where suppliers are unreliable inmaking invoices, inventories, and deliveries. An example would be a supplier who fails tosupplier fresh milk to a restaurant specializing in making white coffee. This supplier’sunreliability would cost the restaurant loyal customers and money (B Romney, 2018). Controlof this risk would be to gather and constantly monitor the supplier’s delivery data and note anydiscrepancies. Another control would be to require suppliers to have a proper certification thatenhances the supplier’s credibility and reliability.c) Kickbacks: this is a production threat when suppliers offer gifts and monetary incentives topurchasing agents aiming to influence suppliers’ respective choices. An elaborate example ofthis would be a physician who receives free lunches…

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