Frozen Ltd, a leading wholesaler of frozen products, is based in Zee land. The storage of frozen products in Zee land is highly regulated and companies such as Frozen Ltd are also subjected to period to period inspections by the ministry so as to ensure compliance with hygiene regulations of the country.

During the external audit of Frozen Ltd, it was discovered that there are no checks of best before or expiry dates of products in the inventory. It was also identified that there are no procedures to ensure that older inventory is despatched to the retailers or customers first.

It was also discovered that Lloyd the Accounts Assistant is the only personnel in the accounts department; he is responsible of receiving payments from the clients. He then receipts the payments and then deposits the money in the company bank account. He then does reconciliations of the bank statement and the cash book.

With the shortage of staff members in the Accounts department, no one reviews what Lloyd could has done. Required:

a. Identify and explain FIVE consequences of the situations highlighted in the case above (10)

b. Discuss recommendations that you make on the consequences that you have identified above (10)