List the internal control weaknesses and suggest a solution to every weakness that you find.?

Revenue Cycle, Sales Director

Q1	I am with the internal audit team and I need to ask you some questions. First, what is your title?
A1	I am the sales director, I oversee the entire sales function all the way from initial customer contact through customer service.
Q2	What are the different ways the company receives orders?
A2	We receive orders in two primary ways depending on whether or not we have history with the customer. For new and non-preferred customers, orders must be received via written purchase order from the purchasing department of wine distributors. For preferred customers with a solid track record, we accept telephone orders made directly with the sales people.
Q3	How does a customer get identified as preferred?
A3	A sales person has to complete a form that I have to approve.
Q4	What happens when an order is placed?
A4	The sales people record the details in an electronic sales order in the system. The system automatically retrieves basic information such as address detail and contact information for recurring customers from the customer master file.
Q5	Is there standard pricing for your products?
A5	Yes, but we do give quantity discounts in certain situations that are negotiated on a case by case basis. Deviations from this standard price list must be approved by the Treasurer.
Q6	What happens when there is a new customer?
A6	Sales people enter them into a queue and I have to approve all additions after the credit manager assigns a credit limit.

Q7	What happens next?
A7	The system is automatically configured to check for available credit and, if the order will not place the customer over their credit limit, then the order is finalized and the system generates a copy of the sales order to be sent to the customer as confirmation. The system also creates a picking ticket to be used by the warehouse clerks to gather the wine.
Q8	What happens if there is a problem with credit?
A8	The order will stay on hold until the credit issue is resolved.

Q9	What happens after the order is finalized?
A9	Using the picking ticket, the warehouse clerk collects the items from their locations in the warehouse, boxes them, and requests a packing ticket from the system. They deliver the wine along with a copy of the packing slip to the departments shipping employees. The system also automatically sends a report to the bookkeeper that he uses to update the finished goods subsidiary ledger and prepares a journal voucher at the end of the day following his posting to the general ledger.
Q10	So shipping is completely outsourced?
A10	Yes.
Q11	What happens after that?
A11	After shipment, the departments shipping employees send a copy of the bill of lading to the accounts receivable clerk.
Q12	Do sales people have to go through any ethics training?
A12	Yes, in fact all of our employees do and they sign a yearly code of conduct
Q13	Since you are using an electronic sales order system, do you have any backup procedures in place?
A13	Yes, we have offsite data storage.