Instruction: Read the case study below and answer questions that follow You are employed at Moroka Stationery (Pty) Ltd. You are part of the accounts receivable department. The internal auditors have identified risks in the revenue cycle, affecting your division. You are assigned to assist the internal auditors in formulating controls to reduce the identified risks. When the warehouse picks goods for the despatch department, the goods are accompanied with copies of the picking slip and copies of the delivery notes. From despatch, the goods are delivered to the customers. The despatch clerk prepares a list of deliveries for the driver. Moroka Stationery (Pty) Ltd has delivery staff, trucks and gate security. The risks identified by the internal auditors are:

1. Credit sales are made to customers who are not creditworthy.

2. Customers often deny receiving goods and/or wrong goods are received

Required Formulate controls that will ensure that:

5.1 Credit sales are made only to creditworthy customers. (15 marks)

5.2 Goods received by despatch from the warehouse and then delivered to customers are the correct goods. (15 marks)