After receiving the current report from the external auditors, the CEO calls for a board meeting. In distributing the agenda, the secretary circulated the auditor's report. When the CEO has called to order the meeting started on the main agenda. Some of the major comments in the report are that in the report of two years back there was qualified opinion due to the non-numbering of the minutes for the board. Last year there was an adverse report due to lagging behind of the bank reconciliation and the register for the assets was not updated. The log books for the company pool vehicles and departments were not available with the transport officer. It appears that the management did not arrest most of the issues raised in the previous reports. In the current year they have a disclaimer due to the lack of physical count of inventory. The warehouse manager was not certain whether the company uses LIFO or FIFO.

Required

Fully elaborate in your report what internal control five recommendations you would make to the general manager