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INTERNAL CONTROL ACTIVITIES 10 marts Read these scenario presented below and answer the questions that follow douch are company that sells high value electronic products

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INTERNAL CONTROL ACTIVITIES 10 marts Read these scenario presented below and answer the questions that follow douch are company that sells high value electronic products to business clients in the UAE. The company employs high skilled labour and some procedures are man However, the company has recently employed modern computerized methods of production and most of the sales and servicing is via online processes in the department that maractures computerired chips, internal control mechanisms exist to safeguard the working environment. However, there appears to be some weakness in internal control Segregation of duties is still very limited in the company Internal control issue. Weakness in segregation of duties 4 Shalima Shaim is the senior manager in charge of cathering and has been with the company for the past 10 years. She is a well-respected member of staff and well aware of the processes and procedures of the company. As such Shalma has assumed greater roles in the Company having responsibilities for: 2. Sara agrees prices with suppliers/providers of goods and services - Shaima has assumed responsibilities of selecting the suppliers very committed to her job and as such very rarely takes holidays Shama will periodically check inventory and advises the purchasing manager on stock ordering There is an absence of a clear credit granting procedure - Shama at times gives preferential treatment to her favourite suppliers. 7. Sam processes all cheques received and banks them herself Sham carries out credit control duties and at times personally goes to the customers' place of business to collect cash payments 9. Shaima collects cash from cash paying customers at the cashier desk once they have ordered their goods. Much of the system is manual 10. At times, Shaima neglects to give the customers receipts for their payments Required: You are required to identity from the above case scenario and briefly explain Five internal control weaknesses that exist in the company scenario and the associated internal Control 5x mark och 40 mark) You should copy and paste the table below into the answer area and complete it with the necessary information Associated internal Control risk Internal control activity 4.1 42 43 44 45

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