Bumbles (Pty) Ltd is a wholesaler of plastic items located in Johannesburg. The financial accountant, Ms...

     

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Bumbles (Pty) Ltd is a wholesaler of plastic items located in Johannesburg. The financial accountant, Ms Nkosi, has requested your advice about the weaknesses in the company's revenue and receipts cycle. You observe the following: The company's accounting system is partially computerised. Orders are received by the order clerk, Mr Windsor via email, but owing to time constraints all orders are not recorded and processed. The order forms are randomly numbered by the system. Once the order has been received, Mr Windsor keys in the customer's account number and a screen appears that indicates whether the customer has exceeded his/her credit limit. Mr Windsor evaluates the customer's credit limit and if the customer's credit limit has been exceeded, the credit controller is requested to override the system to proceed with the sale. Mr Windsor confirms the availability of inventory, and the order is routed to the accounting department. Thereafter, a picking slip is printed and submitted to Mr Parks, the despatch clerk. Mr Parks picks the inventory listed on the picking slip from the shelves and hands the inventory to the delivery person. Two presentation marks will be awarded if the answer is presented in the following required format and for communication, logical reasoning and structure. Weakness 1 mark each Max 6 Control 1.5 marks each Max 9 REQUIRED Describe six (6) weaknesses in the revenue and receipts cycle of Bumbles (Pty) Ltd and describe the effect of each weakness on the accuracy of the accounting records. Bumbles (Pty) Ltd is a wholesaler of plastic items located in Johannesburg. The financial accountant, Ms Nkosi, has requested your advice about the weaknesses in the company's revenue and receipts cycle. You observe the following: The company's accounting system is partially computerised. Orders are received by the order clerk, Mr Windsor via email, but owing to time constraints all orders are not recorded and processed. The order forms are randomly numbered by the system. Once the order has been received, Mr Windsor keys in the customer's account number and a screen appears that indicates whether the customer has exceeded his/her credit limit. Mr Windsor evaluates the customer's credit limit and if the customer's credit limit has been exceeded, the credit controller is requested to override the system to proceed with the sale. Mr Windsor confirms the availability of inventory, and the order is routed to the accounting department. Thereafter, a picking slip is printed and submitted to Mr Parks, the despatch clerk. Mr Parks picks the inventory listed on the picking slip from the shelves and hands the inventory to the delivery person. Two presentation marks will be awarded if the answer is presented in the following required format and for communication, logical reasoning and structure. Weakness 1 mark each Max 6 Control 1.5 marks each Max 9 REQUIRED Describe six (6) weaknesses in the revenue and receipts cycle of Bumbles (Pty) Ltd and describe the effect of each weakness on the accuracy of the accounting records.