Calibre Interiors makes all sales on credit. Cash receipts arrive by mail, usually within 30 days of sale. Sarah Romano opens envelopes and separates the cheques from the accompanying remittance advices. Romano forwards the cheques to another employee, who makes the daily bank deposit but has no access to the accounting records. Romano sends the remittance advices, which show the amount of cash received, to the accounting department for entry in the accounts. Her only other duty is to grant sales allowances to customers. (Recall that a sales allowance decreases the amount that the customer must pay.) When she receives a customer cheque for less than the full amount of the invoice, she records the sales allowance and forwards the document to the accounting department.
Required
You are a new management employee of Calibre Interiors. Write a memo to the company president, Mary Briscoll, identifying the internal control weakness in this situation. State how to correct the weakness.