a. Sales Processing: Inadequate control and segregation of duties; the regional sales manager handles all sales orders, approves credit, and determines the maximum credit limit, which exposes the company to risk.

b. Cash Receipts from Customers: Lacking control in the handling of deposits, separation and endorsement of checks and payment advice, and verification of registration forms.

c. Purchases and Accounts Payable Processing: No identification and control of changes to the IT environment, risk of cooperation between purchasing director and suppliers.

d. Production Payroll Processing: Lack of supervision of overtime

e. Other Accounting System Features: Lack of physical controls over pre-numbered bills of lading, inadequate authorization controls, and lack of tracking changes made to computer programs.

f. Other Policies and Procedures Related to Internal Controls Over Financial Reporting:

Lack of formal training on code of conduct, minimal management feedback for accounting personnel, insufficient unannounced monitoring by external auditors.