You are the audit manager of Delop & Co. (Delop) and have been appointed to perform the audit of Moten Sdn. Bhd. (Moten) for the year ended 31 January 2021. Moten is a manufacturer of office equipment in Shah Alam and the company is facing a steady decline in sales and profits and an increase in bad debts. The directors are concerned with the existing internal controls over the sales and trade receivables system and have asked your firm to conduct a review of the system and to recommend the appropriate improvements. The following information is on the existing sales and trade receivables system: The sales team of Delop which consists of five sales representatives are headed by the sales director. Most of the sales are generated through phone calls or appointments of the sales representatives with the customers. Each sales representative is responsible for managing his own customer accounts, including the right to grant credit facilities to his customers before accepting the sales order. They also have the authority to offer discounts of up to 30% of the standard price of the furniture as set by the board. The company accepts confirmation of the customer orders through a simple email to the appropriate sales representative. Upon receipt of the customer orders from the sales representatives, the warehouse staff shall prepare the delivery of the office equipment with a pre-numbered goods delivery note. A copy of each delivery note is retained in the warehouse and subsequently matched and filed by the warehouse staff with the customer copy as returned Moten's delivery drivers. From the customer's order, the sales department shall then prepare and send the sales invoice to the respective customers. Subsequently upon receipt of the customer orders and the sales invoices, the accounts department staff shall then post the sales invoices to the accounting records. Required: a) Identify and explain ANY FIVE (5) deficiencies in Moten Sdn. Bhd.'s internal controls and provide a recommendation to address each of these deficiencies. (15 marks) b) Explain a test of controls that you would perform on each of the controls recommended in part (a) above. (10 marks) [Total: 25 marks) You are the audit manager of Delop & Co. (Delop) and have been appointed to perform the audit of Moten Sdn. Bhd. (Moten) for the year ended 31 January 2021. Moten is a manufacturer of office equipment in Shah Alam and the company is facing a steady decline in sales and profits and an increase in bad debts. The directors are concerned with the existing internal controls over the sales and trade receivables system and have asked your firm to conduct a review of the system and to recommend the appropriate improvements. The following information is on the existing sales and trade receivables system: The sales team of Delop which consists of five sales representatives are headed by the sales director. Most of the sales are generated through phone calls or appointments of the sales representatives with the customers. Each sales representative is responsible for managing his own customer accounts, including the right to grant credit facilities to his customers before accepting the sales order. They also have the authority to offer discounts of up to 30% of the standard price of the furniture as set by the board. The company accepts confirmation of the customer orders through a simple email to the appropriate sales representative. Upon receipt of the customer orders from the sales representatives, the warehouse staff shall prepare the delivery of the office equipment with a pre-numbered goods delivery note. A copy of each delivery note is retained in the warehouse and subsequently matched and filed by the warehouse staff with the customer copy as returned Moten's delivery drivers. From the customer's order, the sales department shall then prepare and send the sales invoice to the respective customers. Subsequently upon receipt of the customer orders and the sales invoices, the accounts department staff shall then post the sales invoices to the accounting records. Required: a) Identify and explain ANY FIVE (5) deficiencies in Moten Sdn. Bhd.'s internal controls and provide a recommendation to address each of these deficiencies. (15 marks) b) Explain a test of controls that you would perform on each of the controls recommended in part (a) above. (10 marks) [Total: 25 marks)