Pinhead Limited - Internal controls The head office of Pinhead Limited, wholesalers of pinball machines, has asked you to review the system of control over cash collection at one of its production plants because it suspects that there are problems. The plant is the largest single outlet of the company and has substantial annual sales that are invoiced directly to customers. Inquiries reveal the following procedures for invoicing sales and collecting cash. There are two invoice sets that are used for cash sales and credit sales respectively. When payment for cash sales is received by the cashier, one copy of the invoice is stamped as paid and filed alphabetically, while the other is given to the customer. Credit sales invoices are sent to customers. Mail is opened by the secretary to the credit controller, who passes any cheques to the credit controller for his review, without recording the amounts received. The credit controller gives the cheques to the cashier by depositing them in a tray on the cashier's desk. The cashier then makes a listing of the cheques which is used by the credit controller for posting to the accounts receivable ledger. The cheques from credit customers and receipts from cash sales are banked weekly. The credit controller posts remittances to accounts receivable using a computerised accounting system and verifies the cash discount allowable. The credit controller obtains approval from head office to write off bad debts. Any subsequent remittances received in respect of these accounts are credited to 'sundry income'. (a) Senaraikan kelemahan kawalan dalam perakaunan bagi resit tunai. List control weaknesses in the accounting for cash receipts (5 markah/marks) (b) Cadangkan penambahbaikan dalam kawalan dalaman untuk mengelakkan penyelewengan dalam pungutan wang tunai. Suggest improvements in internal control to prevent irregularities in the collection of cash (5 markah/marks) (c) Terangkan prosedur-prosedur audit substantif yang perlu diambil bagi menentukan sama ada penyelewengan telah berlaku atau tidak. Explain substantive audit procedures necessary to deermine whether any irregularities have taken place. (5 markah/marks)