• Cheques from customers are received by mail and from sales representatives, who may obtain the cheques directly from customers.
• All cheques are to be then forwarded to the credit control clerk in the sales order department, who restrictively crosses the cheques so that they can only be banked into Cannon's bank account. She then enters the details of the cheque into the system via a terminal. She attempts to age the receipt but remittance advice details provided by the debtor, as attached to the cheque. If inadequate details are provided, she allocates the receipts so the oldest balance first.
• After all cheques have been processed, the credit control clerk prints the daily cash receipts reports. This report details all cheques input into the system since the production of the previous report. She agrees all cheques to this report, prepares a bank deposit slip and banks the cheques.
• At the end of the day, the accounts receivables master file is updated with cash receipts data. Required
• (a) Identifyallstrengthsandweaknessesintheinternalcontrolsdescribedabove. (b) Discusstheimplicationsofeachoftheweaknessesyouhaveidentified.

(c) What will be your assessment of internal controls relating to Cannon's cash receipts system?