A national publication reported that a university student living away from home spends, on average, no more than €15 per month on coffee. You believe this figure is too low and want to disprove the claim. To conduct the test, you randomly select 17 university students and ask them to keep track of the amount of money they spend during a given month on coffee. The sample produces an average expenditure on coffee of €19.34, with a population standard deviation of €4.52. Use these sample data to conduct the hypothesis test. Assume you are willing to take a 10% risk of making a Type I error and that spending on coffee per month is normally distributed in the population.

Financial Aid Fraud

Harold Jones, the financial aid officer at a small university, manages all aspects of the financial aid program for needy students. Jones receives requests for aid from students, determines whether the students meet the aid criteria, authorizes aid payments, notifies the applicants that their request has been either approved or denied, writes the financial aid checks on the account he controls, and requires that the students come to his office to receive the checks in person. For years, Jones has used his position of authority to perpetrate the following fraud:
Jones encourages students who clearly will not qualify to apply for financial aid. Although the students do not expect aid, they apply on the off chance that it will be awarded. Jones modifies the financial information in the students’ applications so that it falls within the established guidelines for aid. He then approves aid and writes aid checks payable to the students. The students, however, are informed that aid was denied. Since the students expect no aid, the checks in Jones’s office are never collected. Jones forges the students’ signatures and cashes the checks.

Required:

Identify the internal control procedures (classified per COSO) that could prevent or detect this fraud.