Following your recent appointment to the CrownTowers hotel group internal audit department, you have been assigned to conduct an internal control analysis of the Kuala Lumpur CrownTowers hotel. A year ago, the hotel appointed a new General Manager who immediately changed several of the hotel’s systems. He justified these changes on the basis that cost savings could be aieved through more streamlined procedures. In the course of describing some of his cost cuing initiatives, the General Manager tells you:

When I arrived I found some arrangements that really were unnecessarily complex. Two areas I’ve streamlined relate to cash management and purasing. With respect to cash management, I’m now reaping economies of scale by having one person take care of collecting cash, banking the money collected and recording the deposits in our accounting system. This is saving time and energy, as we don’t need to keep passing information from one person to another. Similarly, with respect to purchasing food items, I now have one person placing our purchase orders. To save on frustration and miscommunication with information being passed around, I get the same person to do a check that the goods ordered have all arrived in good condition. Once he’s satisfied that the delivery is in order, he then authorises the supplier’s payment.

Required:
Outline any internal control shortcomings that you see in the system changes made by the new General Manager of the Kuala Lumpur CrownTowers hotel.