During an audit at Orosman Limited you were provided with the following system description of the purchases and payments cycle:

a. The department requesting the goods determines the need for the goods by using an assumption of quantities from the production manager as he has been working in the company for 7 years.

b. The person responsible for the purchase requisition records the details of the products on a single copy, pre-numbered purchase requisition form which he authorises and sends to the purchasing department.

c. The purchasing clerk uses a list of suppliers which he has established as reliable and reasonably priced.

d. When suppliers deliver goods the receiving clerk accepts the goods immediately as he has established a relationship with the delivery staff of the company that supplies the goods.

e. The accountant matches the following suppliers documents before recording purchases: Purchase order Goods received note Supplier delivery note

f. The accountant and the sales clerk review all supporting documentation before the senior accountant authorises the payment.

REQUIRED: 2.1. Identify the weaknesses in the purchases and payments cycle of Orosman Limited. (6) 2.3. Provide appropriate explanations for the weaknesses identified in 2.1. (12) 2.3. Provide possible recommendations that management could implement to manage or mitigate these weaknesses. (12) Please use the following format to answer this question: 2.1. Weakness 2.2. Explanation 2.3. Recommendations A B