(i) Identify deficiencies in the system for 3 ,4 , 5, 6

(ii) Describe the implication(s) of each deficiency identified for 3, 4, 5, 6

(iii) Recommend improvement(s) to address each deficiency for , 3 ,4,5 ,6

Ruby Co produces kitchen units from factory premises. and prepares annual nancial statements to 31 December. Its board comprises four directors, there being a ringing director and directors of sales. production and finance 3: administration. he company employs only one buyer who reports directly to the managing director. Ruby Co exercises the following controls over the acquisition of tangible noncurrent assets: 1. In October the directors and the buyer meet to discuss the tangible non-current asset requirements ofeach functional area. At the end of the meeting an agreed list of acquisitions is approved and a copy is retained by all attendees. 2. The buyer is then required to contact potential suppliers of the approved acquisitions to obtain conrmation of availability. and the lowest price for inclusion in the company's tangible non-current assets expenditure budget for the forthcoming year. 3. In December the directors and the buyer meet again to formalise and approve the tangible non-current asset expenditure budget. Following the meeting. a schedule is produced detailing approved acquisitions by category. expected month of purchase and budgeted cost as obtained by the buyer. The schedule then forms the basis of the tangible non-current assets expenditure budget of Ruby Co for the forthcoming year. 4. Throughout the new year, on a monthly basis, without prior consultation the buyer places orders with suppliers ensuring mat assets are acquired in the month as budgeted. As part of his remuneration package. the buyer is entitled to bonus payments equating to 10% of any saving he can negotiate on budgeted costs. Consequently assets may not necessarily be purchased from the suppliers contacted by the buyer for budgeting purposes. 5. The buyer normally places orders to purchase by a simple e-mail message. However where required by suppliers he provides orders by way of a letter. which he signs. 6. Having placed an order. the buyer calculates his bonus entitlement and forwards a copy of the calculation together with a copy of the order doctunentalion to the managing director. He renews this against his copy of the budget. prior to authorising as appropriate and forwarding to the accounts department for payment of the bonus as part of the buyer's monthly salary