Analyze the expenditure process and identify internal control weaknesses, highlight the weaknesses, explaining why they are weaknesses and the impact which could happen to the organization for each weakness. Burge Muscle Car Restoration specializes in the sale of original and reproduction restoration parts for classic sport cars of the 1960-1970s. The classic car industry has grown as baby boomers age and want to relive memories of their past. This industry in the US is a multibillion-dollar industry that employees over 30,000 people, but it a highly fragmented industry with many small businesses. Burge Muscle Car Restoration is in Louisville, Kentucky and employs 85 full-time employees. Primary customers consist of small restoration shops and classic car dealers. The company has a legacy accounting system that employs a combination of manual processes with stand alone PCs in various departments. Due to the business growing the inefficiencies of having such an antiquated accounting system is a problem. You have been retained by the management team to review their procedures for compliance with effective internal controls standards. Noted below are the companys expenditure cycle procedures. Expenditure Cycle: When the quantity on hand of a particular product falls to a low level, the warehouse clerk selects a vendor and manually prepares 2 copies of a purchase order. The clerk sends one copy of the purchase order to the vendor and one copy of the purchase order to the receiving department. When the goods arrive from the vendor, the receiving clerk matches the packing slip in the shipment to the purchase order that the warehouse clerk had previously sent. If everything is in order, the receiving clerk signs the purchase order and sends it to the accounting department. The clerk then manually prepares a hardcopy receiving report, which he sends with the goods to the warehouse. From his PC, the warehouse clerk uses the receiving report to update the inventory subsidiary ledger to reflect the receipt of the goods. The accounting departments AP clerk receives the suppliers invoice, which she matches and reconciles to the previously received purchase order from the receiving clerk. From her PC, the AP clerk then updates the digital AP subsidiary ledger to reflect the new liability and records the event in the digital purchase journal. Cash Disbursement Procedures: The AP clerk in the accounting department reviews the liabilities that are due by searching the AP subsidiary ledger from the department PC. The clerk then prints out a hard copy cash disbursement voucher for each item due for payment. The AP clerk then sends the cash disbursement voucher to the cash disbursement department for payment. At the end of the day, the clerk prints out a hard copy AP summary report and sends it to the General ledger department. The cash disbursement clerk uses the cash disbursement voucher to record the payment in the check register and then prints a 3-part check. The cash disbursement clerk signs the negotiable portion of the check and sends it to the vendor. One copy is filed in the department. The second copy of the check and the cash disbursement voucher is sent to the AP clerk. At the end of the day, the cash disbursement clerk prints a hard copy of the check register and sends it to the general ledger department. The AP clerk uses the check copy and cash disbursement voucher to record the payment in the voucher register and to close out the liability in the AP subsidiary ledger. The AP clerk then files the hardcopies of the cash disbursement voucher and the check copy in the department. The general ledger clerk posts the summaries received from the AP clerk and the cash disbursement clerk to the appropriate general ledger accounts. The clerk files the hard copy summaries in the general ledger department.