QUESTION $2(20$ Marks$)$ You have been approached by John Stone, the owner of Stonebrix $($Pty$)$ Ltd$,$ to advise on the design of an internal control system for revenue and receipts. Stonebrix $($Pty$)$ Ltd is a newly formed company which will sell bricks to building contractors. Sales will only be made to account holders on credit. John Stone has instructed you to design a manual system as he has not yet decided on whether to implement a fully integrated computer system or to outsource the accounting function. He has also requested that you make use of the personnel who are already employed by Stonebrix $($Pty$)$ Ltd$,$ i$.$e$.$ he does not wish to employ any more staff. He is quite prepared to have whatever documentation is necessary printed, and to incur any other reasonable expenditure for an efficient system to be put in place You have held discussions with John Stone about how the business operates and have noted the following: $1.$ Stonebrix $($Pty$)$ Ltd purchases its bricks from the manufacturer and stores them on its property in a large brickyard. The company sells only popular types of bricks and thus holds only fifteen different types in its brickyard. Each of the types of brick is stored in its own section of the brickyard in symmetrical piles. Bricks are stacked on wooden pallets in piles of $500$ and wrapped in industrial transparent plastic. This makes the counting of bricks on hand quick and simple. Bricks are counted every afternoon after the last delivery and the quantity entered on a pre$-$printed $$daily stock report$$ by Bridge Zuma. $2.$ Building contractors either send a member of their staff $($e$.$g$.$ foreman or driver$)$ to place an order or they phone or fax the order through. Orders are seldom sent through the post. DN $23.$ Stonebrix $($Pty$)$ Ltd delivers the bricks to its customers. A delivery charge is built into the cost of the bricks regardless of the delivery destination. Due to the difficulty of transporting bricks, customers do not collect their orders. $4.$ The staff of Stonebrix $($Pty$)$ Ltd consists of: $*$ John Stone $$ general manager $($and owner$)*$ Shannon Green $$ employed as the financial and administration manager $*$ Preggs Naidoo $$ who has some credit management and general accounting skills $*$ Bridge Zuma $$ the brickyard controller$/$administrator $*$ Marcia Oliver $$ general administration $*$ Petra Peterson $$ qualified bookkeeper $*$ Carmen Twitty $$ reception and secretarial In addition, the gate at the entry$/$exit point for the premises is manned by a security guard and there are two labourers who assist with loading etc. in the brickyard. The company also employs three truck drivers. REQUIRED: Describe the control procedures$/$activities which you consider should be implemented for the revenue and receipts cycle of Stonebrix $($Pty$)$ Ltd$.$ Your recommendations should be set out under the following headings: $2\mathrm{.}1$ Receiving customer orders $2\mathrm{.}2$ Sales authorisations $2\mathrm{.}3$ Brickyard and dispatch $2\mathrm{.}4$ Invoicing