Tickitt & Run are in the process of completing the audit of their client Fredbare Ltd, a manufacturer of swim- wear and sports clothing.

They have just carried out the interim audit and have discovered the following:

1) The audit team have discovered that the purchases system has changed. They have provided the following description of the purchasing system. No other controls exist apart from those described.

• Fredbare has no specific buying department so employees can place orders with suppliers in their own area of responsibility. A three-part order form is used; copy 1 is retained by the originator, copy 2 is sent to the goods inward department and copy 3 is sent to the supplier.

• Goods are received, but not checked, by the warehouse personnel who also deal with inven- tories control and dispatches. Once received, the advice note and purchase order for those goods are sent to the purchase ledger clerk.

• When the supplier's invoice is received the purchase ledger clerk checks the calculations on it, initials it and staples the advice note and purchase order to it. The purchase ledger clerk enters the invoice on to the purchase ledger.

• The invoice is then sent to the manager responsible for the employee who ordered the goods. The manager codes the invoice and returns it to the purchase ledger clerk. Purchase invoices are coded, entered on an analysis sheet and posted to the nominal ledger monthly by journal entry.

• The cashier pays suppliers monthly on instructions from the purchase ledger clerk. The purchase ledger control account is reconciled monthly by the purchase ledger clerk who also reconciles suppliers' statements.

• On a number of occasions goods have been delivered to customers but no invoice raised.

2) In the wages department the wages for staff are based on clock cards for factory staff which are passed to the wages department on Monday morning by the night watchman whose job it is to put new cards out ready for the staff. Weekly paid office staff are paid the same every week so don't need to complete any form of time sheet.

• Wages are made up by Mrs Bobbin with assistance from one part-time member of staff and occasional secondment from the office. Mrs Bobbin calculates the wages, adjusts for any starters and leavers, and any other changes, and produces the payroll. You are required To list any weaknesses you can identify in the above systems. You should amplify the weakness as appropriate, explain its implications and suggest recommendations for improvement.

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The cashier pays suppliers monthly on instructions from the purchase ledger clerk. The purchase ledger control account is reconciled monthly by the purchase ledger clerk who also reconciles suppliers' statements. On a number of occasions goods have been delivered to customers but no invoice raised. 2) In the wages department the wages for staff are based on clock cards for factory staff which are passed to the wages department on Monday morning by the night watchman whose job it is to put new cards out ready for the staff. Weekly paid office staff are paid the same every week so don't need to complete any form of time sheet. Wages are made up by Mrs Bobbin with assistance from one part-time member of staff and occasional secondment from the office. Mrs Bobbin calculates the wages, adjusts for any starters and leavers, and any other changes, and produces the payroll. You are required To list any weaknesses you can identify in the above systems. You should amplify the weakness as appro- priate, explain its implications and suggest recommendations for improvement.