Please help me with this question it's urgent QUESTION 2- REQUIRED(a)Based on the information given above, identify theweaknesses in the internal controls over the ordering andreceiving of inventory at Rockside (Pty) Ltd and makerecommendations that should be put in place to addresseach of these identified weaknesses.Note: You are not required to identify any weaknessesrelating to the recording function or the preparation andexecution of payments.Communication skills: clarity of expression, structure andformat Rockside (Pty) Ltd ("Rockside") is a small furniture retailer situated in the East Londonindustrial area. They sell household furniture on a cash basis.Whilst gaining an understanding of the entity, the following was noted relating to purchasesand payables.OrderingThe general manager is responsible for the overall management of the facility and isassisted by the following employees:The general manager is responsible for monitoring the inventory levels. He checks theinventory levels daily and compares it with the sales records to identify sales patterns.When he notes that the inventory items are running low, he prepares a pre-printedsequentially numbered requisition note in duplicate, specifying the type and quantity ofinventory to be ordered. One copy of the requisition note is sent to the office adminclerk, and the other is filed in the general manager's office for easy reference.Inventory assistantCreditors clerkOffice admin clerkThe general manager requests the office admin clerk to prepare a pre-printed,sequentially numbered order form in triplicate. One copy of the order form is sent tothe supplier whose details are obtained from the list of approved suppliers which isupdated by the general manager regularly. The second copy is filed in the generalmanagers' office and the third copy is kept by the office admin clerk in a file at herdesk for quick referral.ReceivingRockside has one receiving bay for the acceptance of inventory deliveries. When theinventory arrives, the inventory assistant (who is responsible for checking in inventory)will perform the following procedures:1. She agrees the physical quantity of the inventory received with the quantitiesrecorded on the supplier's delivery note;2. She sign's the suppliers' delivery note after any discrepancies have beendocumented on the delivery note; and3. She prepares a pre-printed sequentially numbered Goods Received Note in triplicateof which:I.II.III.One signed copy along with the supplier's delivery note is sent to thecreditor's clerk.The second signed copy is sent to the office admin clerk.The third signed copy is kept by the inventory assistant for easy reference.The inventory is then transferred to the display area. The controls over inventorystorage and the movement from the receiving bay to the display area are sound.

Company sets certain rules and regulations and how those will work and how to operate under…

Based on the information given above, identify the weaknesses in the internal controls over the ordering and receiving of inventory at Rockside (Pty) Ltd and make recommendations that should be put in place to address. each of these identified weaknesses.

Based on the information given above, identify the weaknesses in the internal controls over the ordering and receiving of inventory at Rockside (Pty) Ltd and make recommendations that should be put in place to address. each of these identified weaknesses.

Auditing: A Risk Based-Approach to Conducting a Quality Audit

10th Edition

ISBN:9781305080577

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter9: Auditing The Revenue Cycle

Section: Chapter Questions

Problem 24MCQ

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