The internal audit staff at Sampson conducts a periodic review of the organization's accounting records in order to determine if the system for internal controls is effective.

In the latest audit, the staff found the following situations:

• Bank deposits and cash receipts do not always reconcile.
• Decisions and the actual write-offs of bad debt are performed by the same person.
• Occasional discrepancies exist between physical inventory and the perpetual inventory records.
• Adjustments to physical inventory counts and the perpetual inventory records have been observed.
• Customer refunds and credits are not unusual.
• Original source documents are missing. However, substitute copies of the original source documents are available.
• Many source documents lack appropriate management approval.

Analyze the seven situations of this case study and discuss the possible cause of the situation.