QUESTION 1 [15 MARKS] Tandabantu (Pty) Ltd is a small manufacturing company. The company's accounting functions are carried out by the accounting staff consisting of the accountant, Mary Roose weld, and two clerical assistants, Stella Stirling and Dean Ramian. The new owner of the business, Peter, is concemed about a number of processes followed and, not having a business background, has asked you to review and report on certain of these processes. However, his immediate concern is the control over the payment of creditors. To gather first-hand mowiledge of how the system currently works, Peter himself compiled an accurate description of the system which he has given to you. 1. When an inwoice is received from a supplier, it is promptly entered into the purchase journal by Stella Stirling and filed alphabetically by supplier name. When the supplier's monthly statement arrives, Sella Stirling agreesthe inwoices received to the statement. She also checks that any payments that were made to the supplier by Tandabantu (Pty) Ltd are reflected on the statement. 2. If an inwoice refleded on the statement has not been received, Stella Stirling highlights the inwoice (s) and marks it "outstanding" on the statement. The full amount reflected on the statement is paid. When the outstanding invoice is received, it is filed with the satement to which it relates and the "outstanding" mark on the satement is crossed out and dated. 3. Using the statements, Gella Girling then makes a list of all creditors and the amounts which they are to be paid. The listis passed to Mery Rooseveld, who wirtes out a cheque for each creditor under R5 000. All cheques are carefully written out and marked "not transerable". Mery Roose veld signs each cheque and retums them with the list to Stella Sirling. Sella Stirling confims the amounts of each cheque and that there is a cheque for each creditor on the list under R5 000. Sella Stirling wites the cheque number next to each payment on the list and then mails the cheques to the creditors attached to a Tandabantu (Fty) Ltd compliment sip. If the amount to be paid is more than R5 000 , it is paid by EFT and not by cheque. 4. To pay creditors ower R5 000, Mery Rooseweld accesses the eledronic funds transfer facility on her computer and compiles a schedule of payments to be made by EFT to creditors. She obtainsthis information from the creditors list prepared by Stella Girling. She caref ully checks the details, namely the bank, branch code and account number of the credit or to be paid against a hard copy listing which she keeps for all creditors. 5.Stella Sirling passes the creditors list to Dean Ramian, as he is solely responsible for the cash payments journal, namely wiriting it up, posting transadions to the general ledger and reconciling the cash receipts and payments joumal to the bank statement monthly. REQUIRED Identify the wea messes in the payments system described by Feter. For each weakness you identify, explain briefly why you consider it to be a weakness (i.e., what can go wrong because of this weakness)