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Dale Corporation has asked you to help them by reviewing its internal control system and recommending any appropriate changes. Dale has ten (10) staff (all
Dale Corporation has asked you to help them by reviewing its internal control system and recommending any appropriate changes. Dale has ten (10) staff (all employees). The staff have been very dedicated to the company and most have been with the company for more than fifteen (15) years. As they are very content and happy in their jobs many employees have been in their current position since they were hired. Senior management has really appreciated this as training costs are very high. Dale has two locations: Its original location which is referred to as Main Street and a newer location which is referred to as the Showroom. Kristen is a salesperson at the Showroom but also works in Dale's accounting department at Main Street. Kristen orders goods, receives the goods and pays any invoices. Dale has commented on how efficient this is as Kristen knows what was ordered, so if there is a discrepancy between what was ordered and received or charged on the invoice it is easily found and corrected. Elias works at the Main Street location in the accounting department. He records all sales and makes deposits to the bank. A lot of times the amount to be deposited is small so he waits until the deposit is large enough to make it worthwhile to go to the bank. Elias is also responsible for opening the mail and holds all cash and cheques in a desk drawer until a deposit is made. Required: Identify three (3) weaknesses in Dale Corporation's internal control system and make recommendations to correct them. 1. a. Weakness: b. How to correct: 2. a. Weakness: b. How to correct: 3. a. Weakness: b. How to correct
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