BKAS2013 ACCOUNTING INFORMATION SYSTEMS QUESTION 4 (24 MARKS: 43.2 MINUTES) A. The accountant has prepared the following description of the accounting and internal control procedures relating to purchases by the Hallmark Sdn Bhd, a medium-sized manufacturer of special order machinery. Upon approval by manufacturing department supervisor, material requisition forms are forwarded to the purchasing department supervisor, who distributes the requisition forms to his employees. These employees prepare pre-numbered purchase order in triplicate, account for all numbers, and send the original purchase order to the vendor. One copy of the purchase order is sent to the receiving department, where it is used as a receiving report. The other copy is filed in the purchasing department. When the materials are received, they are stored directly in the storeroom and issued to the supervisors on an informal request basis. The receiving department sends a receiving report (with its copy of the purchase order attached) to the purchasing department and forwards copies of the receiving report to the storeroom and to the accounting department. Vendors' invoices for material purchases are received in duplicate in the mail room. These invoices are sent to the purchasing department and directed to the employee who placed the related order (purchasing clerk). The purchasing clerk then compares (1) the invoice with the copy of the purchase order on file in the purchasing department for price and terms; and (2) the invoice quantity received as reported by the shipping and receiving department on its copy of the purchase order. The purchasing clerk also checks for discounts, footings, and extensions, then they initial the invoice to indicate approval for payment. The invoice is then submitted to the voucher section of the accounting department, where it is coded for account distribution, assigned a voucher number, entered in the voucher register, and filed according to payment due date. REQUIRED: (a) Identify FIVE (5) internal control weaknesses at Hallmark Sdn Bhd. (10 Marks) (b) Suggest internal control application to overcome each weakness in (a). (10 Marks) Please use the following format for this question: No. 1. 2. Internal Control Weakness Suggestions