As a new auditor for Farmers Chartered Accountants, you have been assigned to review the internal controls over cash receipts of Aardvark Pty Ltd. Your review reveals that cheques are promptly endorsed ‘For account of Aardvark Pty Ltd only’ so that they can be deposited only to Aardvark’s bank account, but no list of the cheques is prepared by the person opening the mail. The mail is opened either by the cashier or by the employee who maintains the accounts receivable records. Mail receipts are deposited in the bank each week by the cashier. 

Required

Write a letter to Izzy Rich, manager of Aardvark Pty Ltd, explaining the weaknesses in internal control and your recommendations for improving the system.