Based on the narrative provided below, name one internal control weakness in the system:

All new customers complete a credit application reviewed by the staff accountant responsible for the revenue cycle. The same staff Accountant checks the customers references and determines the credit limit for the customer. This is to be reviewed by the COO prior to the first order being filled. This is not evidence with documentation. The staff accountant then enters the customer information into the internal he developed a customer database and the customer can then buy on credit. The limits are supposed to be checked by the staff accountant responsible for entering sales into the system when sales are made. There is no automated control to detect excess of credit no limit and there is no documentation prepared or signed off evidencing review of the credit limit prior to the processing of sale. The staff accountant responsible for the revenue cycle is responsible for maintenance of the customer information.

Changes to the customer accounts can occur for several reasons including billing errors, standing data changes, Price list changes, customer term and credit limit changes, etc. Generally, customers through sales persons initiate changes. The staff accountant responsible for the customer database investigates the potential changes and processes the changes. These changes are supposed to be reviewed by the COO. No documentation of this review is maintained.