The Canada Revenue Agency has introduced “e-filing.” Registered tax professionals can submit taxpayers’ annual income tax returns online over the Internet. The taxpayer’s annual return information is automatically entered into the tax department’s computer system. No paper forms or receipts need to be submitted, but the taxpayer must retain them because tax department auditors might ask to see them in the future. The tax return and any refund due are processed much more quickly than when paper forms are mailed in. A refund can be electronically deposited to the taxpayer’s bank account, sometimes within one week.

Required:
Comment on the control strengths and weaknesses of the e-file system. In the case of weaknesses, provide recommendations on how they can be compensated for.