Fast-paced Ltd, which specializes in buying and selling office stationeries, is a growing business owned by Mike Bibby.

Fast-paced Ltd has recently redesigned most of its systems and processes. Some of the notable changes made are outlined below:

1. All payments for suppliers’ invoices should be made via electronic fund transfers (EFTs) or cheques through the company’s bank account with Community Bank. All the invoices are stamped and stored after each payment is authorized.

2. Ms. Fullan, one of the employees, is specially assigned with the responsibility of ordering stationeries from the suppliers, and she was also assigned to be the storekeeper for the warehouse where all the company’s stationeries are delivered to.

3. Lee, a recently hired accountant, is the only one allowed access to the company’s accounting records, and one of his main duties is recording the invoices after payments have been made.

4. Lee is also assigned the responsibility of preparing monthly bank reconciliation.

Required:

Identify any TWO strengths and ONE weakness of the internal controls resulting from redesigning the systems and processes at Fast-paced Ltd.

Answer rating: 100% (QA)

Strengths 1 The segregation of duties between ordering stationeries making payments and recording invoices reduces the risk of fraudulent activities T... View the full answer