QUESTION 2 (20 Marks) Fruity Sdn Bhd makes and supplies a wide range of bottled fruit juice to its customers in Malaysia. The company has 4 divisions, with each division specialising in the sale of a different type of fruit juice comprising of mango, apple, watermelon and orange. The juices are packed in cartons containing six plastic bottles per carton and are offered for sale to domestic customers via the company's internet site. Customers review the product list from company's website and place orders online using specific product codes, along with their credit card details, onto the company's secure server. Order quantities are normally between one and four cartons for each type of juice. Customer order details are downloaded from the website and then keyed in manually by the warehouse staff into the company's inventory and sales system. A two-part delivery note is printed in the warehouse when the order is delivered. Each order and delivery note is given a random numeric code based on the name of the warehouse employee keying in the order, the date, and the product being ordered. In the warehouse, the cartons for each order are taken from shelves and delivered to the customer with one copy of the delivery note. The 2nd copy of the delivery note is sent to the accounts receivable department where the sales invoice is posted to the general ledger to show that the order has been delivered. The customer's credit card is then charged by the accounts receivable department. Bad debts in Fruity are currently 8% of total sales. Finally, the computer system checks that for each sale, the order details are on file and a charge is made to a customer's credit card account and that the charge is correctly posted for each customer. Finally, the customer order file is marked as completed confirming that the order has been delivered. (6 marks) Required: a) Identify and explain 2 weaknesses in that sales system above. b) Explains the possible effect of each weakness. c) Suggest an internal control for each weakness. (8 marks) (6 marks) QUESTION 2 (20 Marks) Fruity Sdn Bhd makes and supplies a wide range of bottled fruit juice to its customers in Malaysia. The company has 4 divisions, with each division specialising in the sale of a different type of fruit juice comprising of mango, apple, watermelon and orange. The juices are packed in cartons containing six plastic bottles per carton and are offered for sale to domestic customers via the company's internet site. Customers review the product list from company's website and place orders online using specific product codes, along with their credit card details, onto the company's secure server. Order quantities are normally between one and four cartons for each type of juice. Customer order details are downloaded from the website and then keyed in manually by the warehouse staff into the company's inventory and sales system. A two-part delivery note is printed in the warehouse when the order is delivered. Each order and delivery note is given a random numeric code based on the name of the warehouse employee keying in the order, the date, and the product being ordered. In the warehouse, the cartons for each order are taken from shelves and delivered to the customer with one copy of the delivery note. The 2nd copy of the delivery note is sent to the accounts receivable department where the sales invoice is posted to the general ledger to show that the order has been delivered. The customer's credit card is then charged by the accounts receivable department. Bad debts in Fruity are currently 8% of total sales. Finally, the computer system checks that for each sale, the order details are on file and a charge is made to a customer's credit card account and that the charge is correctly posted for each customer. Finally, the customer order file is marked as completed confirming that the order has been delivered. (6 marks) Required: a) Identify and explain 2 weaknesses in that sales system above. b) Explains the possible effect of each weakness. c) Suggest an internal control for each weakness. (8 marks) (6 marks)