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QUESTION 4 Retro Pty Ltd is a major manufacturer of industrial machinery. Detailed below is a description of its purchasing and payments system. lil When

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QUESTION 4 Retro Pty Ltd is a major manufacturer of industrial machinery. Detailed below is a description of its purchasing and payments system. lil When the stores department requires items to be purchased, they issue a three-part prenumbered purchase requisition that needs to be approved by the store's manager. Copy 1 is sent to the purchasing department, Copy 2 is sent to the accounts payable department and Copy 3 is led in the stores department. liiJ On receipt of an approved purchase requisition, the purchasing department issues a ve-part pre- numbered purchase order. Copy 1 is sent to the supplier, Copies 2 and 3 are forwarded to the receiving department, Copy 4 is forwarded to the accounts payable department and Copy 5 is led in the purchasing department. liii} When goods are received, the receiving department logs in the shipment by stamping \"order received" on its two copies of the purchase order. which then forms its receiving record. One copy of the receiving record is led in the receiving department and the other is fonvarded to the accounts payable department. {iv} The accounts payable department checks that there is a purchase requisition. purchase order and receiving record for each supplier invoice and then approves it for payment. iv) The accounts payable department prepares a pre-numbered disbursement voucher and forwards it along with the supplier's invoice, purchase requisition, purchase order and receiving record to the nancial accountant. {vi} The nancial accountant prepares a cheque for each supplier, signs the cheque and records it in the cash disbursements journal. The cheque is immediately mailed to the supplier. Supporting documentation is returned to accounts payable for ling. {vii} At the end of the month. the assistant accountant undertakes a sequence check of all accountable forms. The nancial accountant receives the monthly bank statement, prepares a bank reconciliation and investigates any reconciling items. Required: Identify seven (3") internal control weaknesses in Retro's internal control concerning the purchases and payments functions. Explain why each is a weaknes

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