Study the scenario and complete the question(s) that follow.

Uniqo Limited

You are a second-year audit trainee on the 31 October 2022 year-end audit of Uniqo Ltd, a casual wear designer, manufacturer and retailer. The company generates its main income from small businesses placing bulk orders of clothing.

During the planning of the audit, one of the first-year audit trainees prepared the following system description in respect of Uniqo's revenue and receipt cycle.

Invoicing:

• Jolinie Bester is the invoice clerk responsible for issuing invoices to customers.
• Copies received from the order department of the internal sales orders (ISOs) are kept in numerical order in a temporary file.
• When copies of delivery notes (DNs) are received, Jolinie matches the ISO number captured on the DN with the matching ISO and files them sequentially as per the DN number.
• She regularly sequence tests the files of matched DNs to identify any gaps in the sequence that should be investigated.
• The details per the DNs are used by Jolinie to prepare the invoices.
• A copy of these invoices is then sent to Ben Turner, the recording clerk.

Recording of sales:

• Ben records the invoices received from Jolinie in the sales journal.
• Prior to entry in the sales journal, a control total is calculated for the invoices to be added.
• This control total is then compared to the total in the sales journal after the entry of individual invoices.
• Any differences are investigated by Ben and fixed where necessary.
• Ben then posts from the sales journal to the debtors control account in the general ledger and individual debtors' accounts in the debtor's ledger.

Source: Daniels, J.C, 2022.

With reference to the revenue and receipt cycle at Uniqo Ltd, identify seven weaknesses. (14 marks)