The auditor of Amerigold who sells and repairs household appliances are currently reviewing their client's internal controls - here is a small extract of the internal control system: When goods are received by the Warehouse Department, they are immediately sent into the warehouse wherever room is available to store the goods. The 'Goods Received Notes ' (GRNs)which accompany individual deliveries are compared to original purchase orders to ensure accurate content before they are stored and filed. There are no signatures on the GRN documents from the receiving warehouse clerks or the third party delivery personnel. The warehouse team also matches both the purchase order and GRNs to the purchase invoice to satisfy the 3-way match test. Also, bank reconciliations are manually performed every two months by an accounts clerk and details of all reconciling items are included. Where the sum of the reconciling items is significant, the reconciliation is sent to the Financial Controller for his formal review.

Identify and explain TWO control deficiencies in Amerigold’s internal control system and provide a recommendation to address each of the deficiencies identified.