Skye Antiques Ltd operates a large shop in the center of North Bromwich and two smaller shops in adjacent towns. They sell expensive reproduction antique furniture. Normally customers see the furniture in the shop and place an order for delivery in the company van within four weeks. The delay occurs because each sale results in a purchase order for one of the suppliers. On placing the order, the customer pays by cash, cheque, credit card, bank transfer or signs a credit sale agreement whereby payment is made in instalments. There are four sales assistants, a van driver and a cashier in the shop. The smaller shops have a shop manager who deals with all the paperwork and part-time staff who assist at busy times. Customer orders are sent through to the main shop for sending to suppliers. Receipts from customers are banked daily - weekend receipts being banked on the Monday - and duplicate sales invoices are also sent to head office. Tills for any cash sales are cashed up daily and cash sheets agreed to till rolls. Managers have to sign the record of receipts. Accounting and purchasing are done centrally by the manager and a part-time bookkeeper. The three directors all have other businesses and review the company operations once a month at an all-day board meeting.

Discussion
– Devise an internal control system for the shops.
– Relate your system to the definition of internal control.
– Identify the types of internal controls in your system.