Required: Read the following case and identify the strengths and weaknesses in Internal Control. A template in given following the case to help guide completing your answers Peyton Electronics, Inc (PEI) is a small wholesale discount supplier of electronic instruments and parts. PEI's competitive advantage is its deep-discount, three-day delivery guarantee, which allows retailers to order materials often to minimize in-store inventories. PEI processes its records with stand-alone, incompatible computer systems except for integrated enterprise resource planning (ERP) inventory and ounts receivable modules. PEI decided to finish integrating its operations with more ERP modules, but because of cash flow considerations, this needs to be accomplished on a step-by-step basis. It was decided that the next function to be integrated should be sales order processing to enhance quick response to eustomer needs. PEI implemented and modified a commereially available software package to meet PEI's operations. Inan effort tereduce the number ofslow-paying or delinquent customers, PEI installed Web-based software that links to the Web site of a commercial eredit rating ageney to check custommer credit at the time of purchase. The following are the new sales order processing system modules Sales. Sales orders are received by telephone, fax, e-mail, Web site entry, or standard mail. They are entered into the sales order system by the Sales department. If the order does not cause a customer to exceed his credit limit, the system generates multiple copies of the sales order Credit. When orders are received from new customers, the system automatically accesses the credit rating Web site and suggests an initial credit limit. ?? daux bas, the credit manager reviews new customer applications for creditworthiness, reviews the suggested credit limits, and accepts or changes the credit limits in the customer database. QnAmouthlu basis, the credit manager reviews the accounts le aging report to identify slow-paying or delinquent accounts for potential revisions to e of credit. As needed, the credit manager issues credit memos for merchandise retums based on requests from eustomers and forwards copies of the credit memos to Accounting for appropriate account receivable handlin Warshousing. Warehouse personnel update the inventory master file for inventory purchases and sales, confirm availability of materials to fill sales orders, and establish back orders for sales orders that cannot be completed from stock on hand. Warehouse personnel gather and forward inventory to Shipping and Receiving along with the corresponding sales orders. They also update the inventory master file for merchandise returned to Receivin Shipping and receiving. Shipping and Receiving accepts inv entory and sales orders from Warehousing, packs and ships the orders with a copy of the sales order as a packing slip, and forwards a copy of the sales order to Billing. Customer inventory returns are unpacked, sorted, inspected, and sent to Warehou Accounting. Billing prices all sales orders received, which is done approximately 5 days after the order ships. To spread the work effort throughout the month, customers are placed in one of six 30-day billing cycles. Monthly statements, prepared by Billing, are sent to customers during the cycle billing period. Outstanding carry forward balances reported by Accounts Recivable and credit memos prepared by the credit manager are included on the monthly statement. Billing also prepares electronic sales and credit memos for each cycle. Electronic copies of invoices and credit memos are forwarded to Accounts Receivable for entry into the accounts evable master file by eustomer account. An aging report is prepared at the end of each month and forwarded to the credit manager. The general accounting office staff access the accounts receivable master fle that reflects total charges and credits processed through the accounts receivable system for each cycle. General accounting runs a query to compare this information to the electronic sales and credit memo and posts the changes to the general ledger master file. What are the internal control strengths in PEI's aystem? Find at leaat five ways in which PEI's processes are exhibiting good internal control 1. 2.Part B: What are the internal control weaknesses in PEI's system? Find at least five eakneases in PEI's processes and suggest ways to correct them. Required: Read the following case and identify the strengths and weaknesses in Internal Control. A template in given following the case to help guide completing your answers Peyton Electronics, Inc (PEI) is a small wholesale discount supplier of electronic instruments and parts. PEI's competitive advantage is its deep-discount, three-day delivery guarantee, which allows retailers to order materials often to minimize in-store inventories. PEI processes its records with stand-alone, incompatible computer systems except for integrated enterprise resource planning (ERP) inventory and ounts receivable modules. PEI decided to finish integrating its operations with more ERP modules, but because of cash flow considerations, this needs to be accomplished on a step-by-step basis. It was decided that the next function to be integrated should be sales order processing to enhance quick response to eustomer needs. PEI implemented and modified a commereially available software package to meet PEI's operations. Inan effort tereduce the number ofslow-paying or delinquent customers, PEI installed Web-based software that links to the Web site of a commercial eredit rating ageney to check custommer credit at the time of purchase. The following are the new sales order processing system modules Sales. Sales orders are received by telephone, fax, e-mail, Web site entry, or standard mail. They are entered into the sales order system by the Sales department. If the order does not cause a customer to exceed his credit limit, the system generates multiple copies of the sales order Credit. When orders are received from new customers, the system automatically accesses the credit rating Web site and suggests an initial credit limit. ?? daux bas, the credit manager reviews new customer applications for creditworthiness, reviews the suggested credit limits, and accepts or changes the credit limits in the customer database. QnAmouthlu basis, the credit manager reviews the accounts le aging report to identify slow-paying or delinquent accounts for potential revisions to e of credit. As needed, the credit manager issues credit memos for merchandise retums based on requests from eustomers and forwards copies of the credit memos to Accounting for appropriate account receivable handlin Warshousing. Warehouse personnel update the inventory master file for inventory purchases and sales, confirm availability of materials to fill sales orders, and establish back orders for sales orders that cannot be completed from stock on hand. Warehouse personnel gather and forward inventory to Shipping and Receiving along with the corresponding sales orders. They also update the inventory master file for merchandise returned to Receivin Shipping and receiving. Shipping and Receiving accepts inv entory and sales orders from Warehousing, packs and ships the orders with a copy of the sales order as a packing slip, and forwards a copy of the sales order to Billing. Customer inventory returns are unpacked, sorted, inspected, and sent to Warehou Accounting. Billing prices all sales orders received, which is done approximately 5 days after the order ships. To spread the work effort throughout the month, customers are placed in one of six 30-day billing cycles. Monthly statements, prepared by Billing, are sent to customers during the cycle billing period. Outstanding carry forward balances reported by Accounts Recivable and credit memos prepared by the credit manager are included on the monthly statement. Billing also prepares electronic sales and credit memos for each cycle. Electronic copies of invoices and credit memos are forwarded to Accounts Receivable for entry into the accounts evable master file by eustomer account. An aging report is prepared at the end of each month and forwarded to the credit manager. The general accounting office staff access the accounts receivable master fle that reflects total charges and credits processed through the accounts receivable system for each cycle. General accounting runs a query to compare this information to the electronic sales and credit memo and posts the changes to the general ledger master file. What are the internal control strengths in PEI's aystem? Find at leaat five ways in which PEI's processes are exhibiting good internal control 1. 2.Part B: What are the internal control weaknesses in PEI's system? Find at least five eakneases in PEI's processes and suggest ways to correct them