Mid-term Essay - CZS Medical Facilities Fall 2022 CZS Medical Facilities is a med sized health care provider traded on NASDAQ. CZS employs twenty physicians, forty nurses, twenty support staff, and ten clerical workers. The clerical workers perform such tasks as reception intake, correspondence, cash receipts, billing, appointment scheduling, checking patients' medication, screening for COVID and taking patient samples of blood for testing. Most patients pay for services rendered by cash or check on the day of their visit. Sometimes, however, the physician who is to perform the respective services approves credit based on an interview. When credit is approved, the physician files a memo with one of the clerks to set up the receivable using data the physician generates. The servicing physician prepares a charge slip that is given to one of the clerks for pricing and preparation of the patient's bill. At the end of the day, one of the clerks uses the bills to prepare a revenue summary and to update the accounts receivable subsidiary ledger The front office clerks receive cash and checks directly from patients. The office clerks give each patient a prenumbered receipt. The clerks take turns opening the mail. The clerk who opens that day's mail immediately stamps all checks "for deposit only." Each day, just before lunch, one of the clerks prepares a list of all cash and checks to be deposited in CZS's bank account. The office is closed from 11:30 AM until 3:30 PM for lunch. Each Friday, when the office is closed, the office manager takes the deposits to the bank. Checks are deposited each week. During lunch time, the clerk who opened the mail that day uses the list of cash receipts and checks to update patient accounts. V The clerks take turns preparing and mailing monthly statements to patients with unpaid balances. One of the clerks write off uncollectible accounts only after the physician who performed the respective services believes the account will not pay and communicates that belief to the office manager. The office manager then issues a credit memo to write off the account, which any clerk processes. The office manager supervises the clerks, issues write-off memos, schedules appointments for the doctors.? makes bank deposits, reconciles bank statements, and performs general correspondence duties. If necessary, a physician may help out. Additional services are performed monthly by a local accountant who posts summaries prepared by the clerks to the general ledger, prepares income statements, and files the appropriate payroll forms. To address recent concerns related to the pandemic, management is considering adopting the use of facial recognition technology for everyone including patients. Facial recognition is a method of identifying or verifying the identity of an individual using their face. Face recognition systems can be used to identify people in photos, video, or in real-time. Facial recognition could be used to recognize customers, speed up service, verify legitimacy of transactions, and track 'bad apples.' Facial recognition software could also be used to track employee habits, improve productivity, and enhance security in work areas that are supposed to be limited to authorized users. REQUIRED: In a memo to CZS Management, identify the control weaknesses at CZS Medical Facilities, Inc. Describe the potential threat and exposure associated with each weakness and recommend how to best mitigate each risk. Item 1: Identify the control weaknesses at CZS Medical Facilities; Item 2: Provide recommendations to mitigate each risk or weakness; Item 3: Provide a list of pros and cons regarding the adoption of facial recognition technology. (Include at least two pros and cons of the potential adoption. You are not being asked to make a decision regarding the adoption.)