These are several internal control weaknesses of a small retail business in regard to its cash receipts and accounts receivable:

i Sales invoices are not pre-numbered.

ii Receipts from daily sales are deposited every Tuesday and Thursday evening.

iii One employee is responsible for depositing customer cheques from collections of accounts receivable and for recording their receipt in the accounts.

iv For credit sales on terms of \(2 / 10\), net \(/ 30\), customers are allowed, for convenience, the discount if payment is received within 20 days.

v A money box is used instead of a cash register to store both the sales invoices and the cash from the sales.

vi Credit sales of a large dollar amount can be approved by any sales employee.

vii When customers write cheques for payment, only the identification of customers who look 'untrustworthy' is verified.

Required:

a For each internal control weakness, explain how the weakness might result in a loss of assets.

b For each internal control weakness, explain what action should be taken to correct the weakness.