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Sample Competency Fats Foods is a major producer of a wide selection of food products. When the stores department requires items to be purchased, they

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Sample Competency Fats Foods is a major producer of a wide selection of food products. 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. One copy is sent to the purchasing department, another copy is sent to the accounts payables department and the last copy is filed in the stores department. Upon receipt of an approved purchase requisition, the purchasing department issues a five-part pre-numbered purchase order. One copy is sent to the supplier, 2 copies are forwarded to the receiving department, one copy is forwarded to the accounts payable department and another copy is filed in the purchasing department. When goods are received, the receiving department just stamps 'order received' on its two copies of the purchase order, which then forms its receiving record. One copy of the receiving record if filed in the receiving department and the other is forwarded to the accounts payable department. 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. The accounts payable department prepares a pre-numbered payment voucher and forward it, along with the supplier's invoice, purchase requisition, purchase order and receiving record, to the financial accountant, who signs the payment voucher, completes the payment by bank transfer to the supplier and returns the supporting documents to the accounts payable department. At the end of the month, the assistant accountant undertakes a sequence check of all pre-numbered documents. The financial accountant received the monthly bank statement, prepares a bank reconciliation and investigates any reconciling items. Required: Identify and briefly explain the weaknesses and deficiencies in the company's internal control through an Internal Audit Report using the template provided below. Also, propose action plans or internal control procedures to help them improve their process and reach their objectives

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