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(Auto-Graded) Professional Application, Question 9.3 Naminl Corp. sells Its products to clients ranging from proprietorships to medium-sized entities. Namlnl is controlled by two family members,

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(Auto-Graded) Professional Application, Question 9.3 Naminl Corp. sells Its products to clients ranging from proprietorships to medium-sized entities. Namlnl is controlled by two family members, and most of the employees are casual staff employed during the busy seasons (November 1 through January 15, and May 1 to July 15). The company's managers feel that on-the-job training Is adequate for their needs and that the labour savings from using temporary staff are reflected In the prots that Namlnl has earned for the family each year. The company has made a niche In Its market by guaranteeing excellent and quick customer service. When a customer order is received, either by phone or by fax, the customer service clerk (CSC) who takes the order checks that Namini has the goods In stock and the correct price by checking an online database of inventory on hand. If the goods are available, the clerk then personally phones the customer back to verify the order, Including both quantity and price for each Item, and then calculates the extended prloes for the entire order. The clerk then prepares a sales Invoice and faxes a copy to the customer. Naminl's policy is for the sales Invoice to show a shipping date of one day from the order date. The clerk then walks to the warehouse (adjacent to the sales offioe}, selects the goods, and takes them to shipping. The company has a shipping staff of four people, and the shipping department will not ship any goods without a sales Invoice InItIaIIed by the CSC. The shipping department Is determined to reduce the number of shipping errors. This year, only nine shipments have occurred In which there was no sales invoice initialled and attached to the shipping bill. One of these turned out to be an urgent shipment to a long-time customer, sent on the manager's verbal instructions. In that case, the shipping clerk noted that the manager provided a sales invoice within one day for the shipping records. Another shipment resulted in the CSC being fined for fraud when It was discovered that he had sent a shipment of goods to a friend at below cost. Therefore, only the other seven shipments were considered to be true errors. If the sales Invoice does not Indicate who is to pay the shipping costs, then Namlnl sends the goods FOB shipping point. When a shipment Is occasionally delivered to an Incorrect address, It Is the C505 job to contact the customer and obtain the correct Information. If the account Is unpaid aer the due date (30 days), the receptionist malls a reminder Invoice to the customer. If the account remains unpaid after 60 days, the receptionist pulls the sales Invoice and gives it to the CSC who made the sale. The CSC ls then responsible for contacting the customer by phone to determine If there is a problem. Which of the following represent lntemal control weaknesses In Naminl Corp.? Customer service clerk (CSC) receives the order, approves the order, and authorizes the shipment 9'!\" Ability of management to send a shipment without a sales Invoice Verifying prices by checking an online database of inventory Orders are processed after availability of Inventory is verified Absence of approval of lnvolce quantity and prices :nmnp Shipment of goods to a friend below oost

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