Soak City Waterpark Ltd. is a family-owned business just outside of Winnipeg. The waterpark is only open for business from May to September. During the winter months, the waterpark undergoes repairs and maintenance upgrades. 

The capital assets for Soak City are signifi cant and the Waterpark recently completed an expansion project, where additional fencing, a restaurant, and a point-of-sale system was installed and three additional slides were constructed. Soak City uses the following accounting procedures: 

Revenue/Receivables/Receipts 

This is strictly a cash business. Revenues consist primarily of admission fees, but other revenues include restaurant sales and locker rentals. There are six cash registers open at peak times, and each starts with a daily fl oat of $200. When the park is closed, the cash tills are kept in a vault. At the end of each day, each cashier counts out the fl oat and places the remaining cash in an envelope and gives it to the Admissions Manager. The Admissions Manager counts the cash and prepares the bank deposit. The admissions manager also completes a sales summary report, which summarizes the cash sales. This report is forwarded to the accounting department and the sales are recorded in the general ledger based on this report. When completing this report, she calculates and compares the admission revenues recorded in the tills with the cash collected. This information is forwarded to the General Manager, who compares the sales with the bank statements. 

Purchases/Payables/Payments 

Purchases are initiated by the various department heads. When they need something, they ask the general manager if it is okay to make the purchase. If he gives them approval, they place the order using the approved supplier list. The accounts payable clerk reviews every invoice and prepares all cheques for signatories. All cheques are signed by the owner/manager. 

Payroll 

When the waterpark is opened, the Payroll Administrator receives staff information from the Admissions Manager and she sets up the payroll information in the system. If the Payroll Administrator is busy she will allow the Admissions Manager to add staff to the master fi le. However, the Payroll Administrator reviews the monthly payroll report at the end of each month. 

Required

(a) Identify the control strengths at Soak City Waterpark. 

(b) Identify the control weaknesses at Soak City Waterpark. For each weakness, state the implication (the WCGW) of the weakness and make a recommendation to correct it.