QUESTION 1

Senja Pelangi Berhad is a manufacture of bicycle based in Jitrah, Kedah. It currently was employing 125 peoples that assigned in various departments. The expenditure procedure of Senja Pelangi Berhad is described below. The purchasing process begins in the purchasing department when the purchasing clerk reviews the computerized inventory records, which is linked to the subsidiary inventory subsidiary ledger. When an item is deemed to be too low, the purchasing clerk chooses a supplier from the supplier records and creates a hard-copy purchase order. One copy is sent via email to the supplier, a blind copy of the purchase order is sent to the warehouse and third copy is filed in the purchasing department. Typically within 3-5 business days, the warehouse receives the ordered parts and the packing slip from the supplier, which the warehouse clerk reconciles with the blind copy of the purchase order. Once the reconciliation is complete, the warehouse clerk prepares a three-part hard copy receiving report stating the quantity and condition of the items received. One copy of the receiving report is sent to the general ledger department to update the digital inventory control account. The second copy is sent to the AP department and the third is sent to the purchasing department to update the inventory subsidiary ledger. When the suppliers invoice arrives, the AP clerk adds a record to the supplier invoice file, which triggers the system to automatically set up a liability in the AP subsidiary ledger based on the financial information contained in the invoice. The system then automatically updates all affected GL accounts. Upon receipt of the documents from AP department, the cash disbursement clerk files the document, the cash disbursements clerk file the documents until their payment due date. On the due date, the clerk prepares a cheque for the invoiced amount, which is sent to the treasurer who signs it and mails the cheque the supplier. The cash disbursement clerk then updates the cheque register, AP subsidiary ledger and the AP control account from his terminal. Finally, the clerk files the invoice, purchase order copy, receiving report and check copy in the department.

Required:

a. Discuss FIVE (5) weaknesses of the expemditure procedures of Pelangi Senja Berhad (10 marks)

b. Provide a recommendation to improve each of the weakness as identified in question (a). (5 marks)

Your answer should be writing using the following format.

Weaknesses Recommendations

i wish i get answer by i hour from now

thank you tutor