As a finance manager you are required to draw a report to sent to the auditor, giving your reactions and comment to the below , stating what you intend to do about them.

1) All departmental managers and their assistants have keys which give them free access at all times to the stores. when they need anything, they open the stores, take what they need, and leave a note listing what they say they have taken. when a key is reported lost, the holder is given a replacement.

2) Incoming dry goods are put in one large storeroom, which is really a basement below ground, not very large, rather damp and ill-lit. it contains a number of steel shelves on which goods are stored. Goods required more often are stores on the lower of shelves, while slower-moving items are stored on the higher shelves, access to which is by long ladders.

3) The accountant files the delivery notes in one file and pays them by cheque when he has funds available. The paid delivery notes are then filed in a separate file in date order according to when they were paid. Often the accountant takes months to pay suppliers, as the company's customers generally take a long time to pay, which results in shortage of liquidity for the company.