q10: You are the senior auditor of Nice and Natural Ltd (NNL) for the year ended 30 June 2021. NNL is a large pharmaceutical manufacturer and distributor located in NSW. One of your junior auditors, Charles, is keen to evaluate NNL's strengths and weaknesses for some of the client's procedures. For the following independent situations:

i. Identify if it is a strength or a weakness of the control systems

ii. Give a reason why it is a strength or a weakness it.

iii. If it's a weakness, suggest improving the controls to overcome the weakness.

iv. If it's a strength, what is the benefit of the strength?

The Financial Account allocates all the receipts from the customer to their accounts daily. The Financial controller also receives the monthly bank statement, prepares a bank reconciliation, investigates reconciling items, and makes an necessary adjustments.