5 Sales system deficiencies RST Co supplies a wide range of garden and agricultural products to trade and domestic customers. The company has 11 divisions, with each division specialising in the sale of specific products, for example, seeds, garden furniture, agricultural fertilizers. The company has an internal audit department which provides audit reports to the audit committee on each division on a rotational basis. Products in the seed division are offered for sale to domestic customers via an internet site. Customers review the product list on the internet and place orders for packets of seeds using specific product codes, along with their credit card details, onto RST Co's secure server. Order quantities are normally between one and three packets for each type of seed. Order details are transferred manually onto the company's internal inventory control and sales system, and a two part packing list is printed in the seed warehouse. Each order and packing list is given a random alphabetical code based on the name of the employee inputting the order, the date, and the products being ordered. In the seed warehouse, the packages of seeds for each order are taken from specific bins and dispatched to the customer with one copy of the packing list. The second copy of the packing list is sent to the accounts department where the inventory and sales computer is updated to show that the order has been dispatched. The customer's credit card is then charged by the inventory control and sales computer. Bad debts in RST are currently 3% of total sales. Finally, the computer system checks that for each charge made to a customer's credit card account, the order details are on file to prove that the charge was made correctly. The order file is marked as completed confirming that the order has been dispatched and payment obtained. Required (a) In respect of sales in the seeds division of RST Co, prepare a report to be sent to the audit committee of RST Co which: Identifies and explains five deficiencies in that sales system Explains the possible effect of each deficiency Provides a recommendation to alleviate each deficiency (Note. Up to 2 marks will be awarded for presentation.) (17 marks) (b) Explain the advantages to RST Co of having an audit committee. (3 marks) (Total = 20 marks)