Consider the following independent situations, which apply to an audit of your client ending 30 June 2020.

Situation 1: ABC Pty Limited is a garden tool manufacturer. When goods are received the receiving department simply stamps "order received" on its two copies of the purchase order, which then forms its receiving record. One copy of the receiving record is filed in the receiving department and the other is forwarded to the accounts payable department

Situation 2:Arjaan Prasad Limited is a large machinery spare parts manufacturer that transmits purchase orders electronically to its many suppliers. Each supplier electronically transmits an invoice, which is credited directly to the accounts payable file. The goods usually take one or two weeks to arrive. Once they have been received, goods received note is raised and matched with the supplier invoice, and payment is authorised

Situation 3: Rinnai Limited's credit officer, whose prime responsibility was seating and reviewing customer's credit limit, retired during the year. The position remained unfilled for six months, as no suitably qualified and experienced replacement has yet been found

Situation 4:Kimberly & Juny Limited failed to discover an employee fraud on a timely basis because bank reconciliation was not being reconciled on a timely basis

Required

For each of the independent situation above

1) Identify the internal control weakness(es) and outline the risk that results from each weakness.

2) Indicate the key account balance(s) affected.

3)Identify the internal control weakness(es) and outline the risk that results from each weakness.