Aurello Pellegrini, Dottore Commercialista (CONSOB), is approached by his client who has just reorganised his medium-sized manufacturing company to make it more structured by giving responsibilities in related areas to one employee. The ‘supervisor for customers’ is responsible for both collection of accounts receivable and maintenance of accounts receivable records. The ‘inventory coordinator’ is responsible for purchasing, receiving and storing inventory. The ‘payroll agent’ handles all payroll matters including personnel records, keeping time cards, preparation of payrolls and distribution of payroll checks.

Required:

Consider each of these new positions and discuss the implications of their duties on the internal control system. Discuss what sorts of problems could arise if these positions are created.