Franklin Paper Shop operates a printing plant. Their CEO has approached you to prepare a report on their internal cash controls. Franklin Paper Shop employs one finance officer, Jack. Jack arrives each day and checks the invoices that are due for payment and makes those payments direct to the supplier. He is also proficient in their accounting software, Xero and is able to enter these invoices and payments into the system as he approves them. Jack also helps out by collecting any cash payments and banking them for the business. Jack is required to seek authorisation from the CEO for any payments, however the CEO is often busy and has given Jack a copy of his digital signature which he has verbal permission to use if he cannot locate the CEO. Jack is a bit behind in the monthly bank reconciliations but ensures the CEO he will catch up soon. Jack has over 6 weeks annual leave accrued as he does not like to take holidays. On the rare occasion he is out of the office he is able to access the internet banking remotely as he has all of the passwords saved on his home computer. The CEO advises that no other staff members have access to the Xero file to assist with security.

Required:

Prepare an informal report for the CEO of Franklin Paper Shop on the status of their internal controls. Provide solutions to any control breaches you identify.

Word limit: MAXIMUM 500 words