Errors and misappropriations that may occur if purchases and capital expenditures are not properly controlled?

If purchases and capital expenditures are not properly controlled, organizations may face significant financial errors, such as overspending or misallocating funds to non-essential items. This can lead to budget overruns, reduced profitability, and potential cash flow issues. Additionally, misappropriation of assets may occur, increasing the risk of fraud and resulting in financial losses. Overall, lack of control can undermine operational efficiency and hinder strategic decision-making.