A company has one employee responsible for ordering goods, verifying receipt, and paying suppliers. What risk does this pose, and how can separation of duties mitigate it?

The employee may overpay suppliers creating financial losses; separation assigns payment verification to different staff.

The employee may lose supplier invoices creating record gaps; separation assigns invoice management to different staff.

The employee may forget ordering requirements creating inventory shortages; separation assigns task completion to different staff.

The employee may commit fraud through collusion or fictitious transactions; separation assigns each task to different employees.