Each of the five situations below contain potential weakness(es) in the companys system of internal control structure. Ike Manufacturing Company manufactures plastic containers in the West of United States of America. The company has an audit committee that actively takes its oversight responsibilities seriously; the audit committee is made up of three outside directors and Jet King, who is one of the companys executive officers. It also has a board of directors. The audit committee meets twice a year to discuss financial status of the company, with regard to financial and accounting policies. Jet Kings responsibilities in the company and a member of audit committee include reviews and approval of loans between the company and its executive officers. The company also has an Internal Audits division that performs internal audits of its operating units. The Internal Audits Division reports directly to Pat Rodriguez, the chief operating officer.

Class Project on Ike Manufacturing Company The company has a written code of conduct which is presented and explained to every newly-hired employee, who in turn agrees to comply with the code. The companys hotline for confidential reporting of unethical behavior is staffed by the Chief Financial Officer. The company has a structure it believes makes business sense. For example, one employee is responsible for the purchasing, receiving, and storing of merchandise. Another employee has full responsibility for maintaining accounts receivable records and the collection of payments from customers. Further, a third employee is responsible for personnel records, timekeeping, preparation of payrolls, and distribution of payroll checks. Required: For each of the above situations, identify the weaknesses in Ike Manufacturing Companys system of corporate governance and internal controls, and recommend ways the company can make improvement. Format your responses in a two-column (one column for weaknesses and the other for recommendations) using MS Word Table.