Evaluate the internal controls at ABC Inc. and provide advice about how to improve the controls.

A summary of the conversation concerning the accounting processes is as follows:

• The accounting department has been severely overworked during the past year because of the loss of two employees who have not been replaced.
• For the past several months, the accounting department has consisted of the accounting manager and two assistants: one of whom is responsible for the billing, collection, and cash receipts function; for preparing and making bank deposits; and, for handling related customer enquiries; the other is responsible for the purchases, payables, and cash disbursements function; for the payroll function; and, for the general ledger function.
• The accounting manager tries to prepare the monthly bank reconciliations and to review the monthly financial statements prepared by the employee who has responsibility for the general ledger, but has not had time to do so for the past four months.
• The receptionist answers the telephone, handles some customer service issues, and opens the mail daily.
• New desktop computers were purchased in 2021 for the accounting department. All employees log in using the same login name and password to access the files.
• The accounting manager is very frustrated with the inventory accounting. He spent many hours trying to reconcile the year-end inventory count to the inventory records as at December 31, 2021. He is upset because the shipping documents are manually numbered and dated before the inventory is shipped; and, when it is really busy the shipping department employee responsible doesn't always remember to record shipments in the shipping log. The last entry in the shipping log was three weeks before year-end.
• The inventory and cost of sales accounts in the general ledger have been adjusted by $75,000 at December 31, 2021 to adjust the balance in the inventory account to agree with the inventory amount determined by the inventory count of finished vehicles.The inventory count determined that finished bicycle inventory was less than the amount reported in the accounting records. The accounting manager believes the difference may have resulted from inventory counting errors made by casual help hired to help with the inventory count.