all Optus F+3:54 @ 1 70%

< Home 4: Wlarehouse Managers' copy In the warehouse, the inventory is drawn as shown on COPY 4 Of the invoice With quantities as necessary, The warehouse copy invoice is filed in date order as recorded the invoice. The Dispatch department receives the order from the warehouse identified by the customers name, and quantities and product are checked to irwoice copies, Where ordered quantities are more than the available stock, Dispatch Department staff alter both of their copies agree with the quantity supplied, Then the goods are prepared for shipment and a two-copy delivery is *epared. Copy 3 Of the invoice is placed in one carton as a packing Slip. 5 Of the invoice iS returned to the Accounts Receivable together with the original of the delivery docket. A COPY Of these documents are numerically filed by the Dispatch Department When COPY 5 is received bv the Accounts Receivable Clerk, he records the invoice actual quantities dispatched, prices, extensions, discounts, if any, and total on copies I and 2, Copy I iS forwarded to the customer together with the original of delivery docket. The accounts receivable ledger and the sales journal are prepared simultaneously. To minimize errors, sales are posted to the accounts receivable ledger sales journal using copy 2 of the invoice which is subsequently attached to copy 5 and filed numerically. Each month, the general leew derk Summarizes the sales journal for posting to the ledger. Because Excellent Furniture has a liquidity problem. the deposit of receipts is also expedited. The receptionist harxis all ma il receipts and related correspondence to AR who examir*S the determines whether or not the accompanying vouchers or correspondence contain enough detail to *rmit posting Of the ntS_ The AR then endorses the cheques and gives them to the cashier prepares the dairy deposits. No cash is received in the mail and no goods are sold over the counter. The AR uses the vouchers or correspondence that accompanied the cheques to post the aCCOLMtS receivable ledger cards. A cash receipt register is prepared as a carbon copy of postings. Monthly, the general ledger Clerk Su the cash receipts register for to the general ledger accounts. The AR also corresponds with customers about unauthorized deductions for discounts, allcmances, returns, etc, and prepares the appropriate credit Disputes involving large are to the sales manager for settlement Each month, AR prepares a trail balance Of the receivable to agree with the general Edger. use the follcnving table to: Prepare a management letter to Excellent Furniture detailing your review and Of its internal control (ICJ over customer billings and remittances. You need to identify 4 (Four) weaknesses, the potential consequences (effects) Of those weaknesses, how weaknesses corrected (strengthened), and at least ONE substantive audit procedure for testing the significance of the error. C We*ness (10 Marks) Potential cons (effect) of the We ness Recommendation to streng the n JC (ISMarks) audit (10 mms)