Question 1 (25 marks) Sunny Electronics Lid are eneaged in the assembly of television sets. You have boen engaged as a consultant to review the company's internal controls over the order, receipt, storage ans issue of component parts. Your assistant has prepared the following notes on the system: Component parts, which consist mainly of high-value electronic components, are kept in a locked storeroom. The stores staff comprises one supervisor and four assistants. All are well trained and competent. Components are removed from stores only upon the written or verbal authority of one of the production foremen. Perpet ual inventory records are not kept and the stores staff do not keep records of components received or issued. To compensate for the lack of perpetual records, a physical inventory count is carried out monthly by the stores staff. Procedures for this count are good. After the physical count, the stores supervisor compsres quantities counted against a predetermined reorder level. If the count for a given part is below the re order level, the supervisor enters the part number on a materials requisition list and sends the list to the accounts payable clerk. The accounts payable clerk, prepares a purchase order for a prodetermined reorder quantity for aach component and mails the purchase order to the supplier from whom the component was last acquired. When components ordered arrive at sunny, the stores staff receive them, They count the components and agree their counts to the supplier's delivery note. All suppliers' delivery notes arc initialed, dated and filed in stores, in case of dispute. YDU ARE REQUIRED TD: Recommend, with reasuns, improvements to the systems of ordering, receiving, storage and issuing of component parts