Karen Shida & Associates have performed a thorough review of three main subsystems of D'KEEN Bhd, its new audit client. The company supplies car parts directly to workshops in Melaka and it does not have any retail outlet. The following narrative descriptions were provided by one of the team members: Sales & Cash receipts Sales were made on cash and credit terms. For cash sales, a pre-numbered cash bill is issued and delivered together with the goods to the customer. The cash is collected immediately by the delivery person at the point of delivery of goods. For credit sales, a pre-numbered sales invoice is issued and faxed to the customer. The payment is usually received by cheque. Hak Giplan Universiti Teknologi MARA CONFIDENTIAL CONFIDENTIAL AC JUN 201W/AUD314 The Accounts Clerk is in-charge of receiving the cheques from credit customers and he is responsible for preparing a list of all cheques received on a daily basis. The particulars of the customer's name, amount received and cheque number are written on the list. Cheques are deposited daily by the Accounts Executive, The Accounts Clerk uses the list of cheques to update the daily collection in the cash receipts journal. Purchases & Cash payments Purchases of car parts from the supplier were made by an authorised Purchasing Officer. A two-copy pre-numbered purchase order is prepared by the Purchasing Officer and approved by the Purchasing Manager. A softcopy of the approved purchased order is sent to the supplier by e-mail. The car parts would be received from the supplier by the Purchasing Officer who would compare the physical item received against copy 1 of the purchase order. When the invoice is received from the supplier, the Accounts Clerk matches it with copy 2 of the purchase order. The Accounts Clark would then prepare a payment voucher and a cheque for submission to the Accountant. The Accountant would ensure that the amount on the cheque matches with the amount on the payment voucher before signing on the cheque. Payroll system A schedule of salary payments is prepared by the Accounts Clerk and submitted to the Accountant. Based on the schedule, the Accountant would prepare a payment instruction form and send it to the bank. Required: Discuss any FIVE (5) major weaknesses in the above internal control subsystem