ABC Ltd a large manufacturing company of Facial Tissue and hand towel and is limited by liability, all its production, stores and head office buildings is situated on a single site. The buying and accounts departments are in the head office building.

The company recently sold its majority shares to the Chins family who are now the new directors having met with the key staff personnel the new directors have been informed that there is an inadequate internal control procedures that has resulted in poor documentation. Similarly, there has been no attempt to use supplier statements to supplement other controls within the system.

A batch entry batch processing system is used throughout the companys accounting system, which incorporates fully integrated payables and general ledgers.

Required:

(a) In relation to Purchases and Trade Payable system state FOUR objectives of having internal controls

(b) Management is responsible in implementing proper internal controls in an organization; identify the internal controls that should exist in ABC Ltd over the following

(c) State the meaning of the term batch entry batch processing system and explain the benefits of how the use of control totals in such a system can benefit the Company