An auditor's working papers include the narrative description below of the cash receipts and billing portions of internal control of Rural Building Supplies, Inc. Rural is a single-store retailer that sells a variety of tools, garden supplies, lumber, small appliances, and electrical fixtures to the public, although about half of Rural's sales are to construction contractors on account. Rural employs 12 salaried sales associates, a credit manager, three full-time clerical workers, and several part-time cash register clerks and assistant bookkeepers. The full-time clerical workers perform such tasks as cash receipts, billing, and accounting and are adequately bonded. They are referred to in the narrative as "accounts receivable supervisor," "cashier," and "bookkeeper."

{Narrative}

Retail customers pay for merchandise by cash or credit card at cash registers when merchandise is purchased. A contractor may purchase merchandise on account if approved by the credit manager based only on the manager's familiarity with the contractor's reputation. After credit is approved, the sales associate files a prenumbered charge form with the accounts receivable \((A / R)\) supervisor to set up the receivable.

The \(A / R\) supervisor independently verifies the pricing and other details on the charge form by reference to a management-authorized price list, corrects any errors, prepares the invoice, and supervises a part-time employee who mails the invoice to the contractor. The \(A / R\) supervisor electronically posts the details of the invoice in the \(A / R\) subsidiary ledger; simultaneously, the transaction's details are transmitted to the bookkeeper. The A/R supervisor also prepares a monthly computer-generated \(A / R\) subsidiary ledger without a reconciliation with the \(A / R\) control account and a monthly report of overdue accounts.

The cash receipts functions are performed by the cashier who also supervises the cash register clerks. The cashier opens the mail, compares each check with the enclosed remittance advice, stamps each check "for deposit only," and lists checks for deposit. The cashier then gives the remittance advices to the bookkeeper for recording. The cashier deposits the checks daily separate from the daily deposit of cash register receipts. The cashier retains the verified deposit slips to assist in reconciling the monthly bank statements, but forwards to the bookkeeper a copy of the daily cash register summary. The cashier does not have access to the journals or ledgers.

The bookkeeper receives the details of transactions from the \(A / R\) supervisor and the cashier for journalizing and posting to the general ledger. After recording the remittance advices received from the cashier, the bookkeeper electronically transmits the remittance information to the \(A / R\) supervisor for subsidiary ledger updating. The bookkeeper sends monthly statements to contractors with unpaid balances upon receipt of the monthly report of overdue balances from the \(A / R\) supervisor. The bookkeeper authorizes the \(A / R\) supervisor to write off accounts as uncollectible when six months have passed since the initial overdue notice was sent. At this time, the credit manager is notified by the bookkeeper not to grant additional credit to that contractor.

Required:

Based only on the information in the narrative, describe the internal control weaknesses in Rural's internal control concerning the cash receipts and billing functions. Organize the weaknesses by employee job function: Credit manager, A/R supervisor, Cashier, and Bookkeeper. Do not describe how to correct the weaknesses.