As the internal auditor of the Sell Anything Group of companies, you have been asked to investigate the cash sales system of Stationery Ltd., one of the subsidiaries. Stationery sells office supplies in the Halifax area. Its prices are highly competitive and it offers a same-day delivery service for orders telephoned before noon. Costs are kept down by requiring cash on delivery. Sales are made in the following way: 1. The customer phones through an order to the sales department, which raises a pre-numbered multi-copy sales order, two of which (the invoice copies) are priced and totalled to verify the accuracy of the invoice. 2. The shipping department makes up the order using the sales order and gives the goods to the driver with the invoice copies of the order. 3. The driver delivers the goods, collects the cash, and receipts the customers copy of the invoice. 4. The driver returns and hands over the cash and the second copy of the invoice to the cashier. 5. The cashier records and deposits the cash. What weaknesses do you see in the cash sales system at Sell Anything Group?

Sales order is used as a shipping document.

Cash collected by driver without the use of a point of sale terminal or cash register.

Invoices are priced and totalled.

Driver hands over cash and invoice to the cashier.

Cashier records and deposits the cash.

Accounting personnel does not seem to be involved in recording of the cash.