As the internal auditor of the Sellanything 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 Melbourne 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

prenumbered multicopy sales order, two of which (the invoice copies) are priced and

totalled.

2. The dispatch department makes up the 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 customer's 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 banks the cash.

Required

(a) State any weaknesses in the cash sales system.