Question 2 (3 x 5 marks (15 Marks) Read the three case descriptions below: (A), (B) and (C), which describo the existing internal control system at a manufacturing company (A) When the production manager, Alan Ackbar, orders materials, he sends a copy of the purchase order (PO) to the receiving department. When the materials are delivered, Jane Jabba, the receiving clerk, records the receipt of the materials on the purchase order and then sends the purchase order to the Finance department. The Assistant accountant uses the purchase order to record materials purchases and accounts payable. The materials are then sent to the warehouse and the quantities purchased are recorded in the inventory ledger. The assistant accountant processes payments. (B) Employees record their completed shifts using timesheets. The timesheets are collected on a weekly basis and sent to the IT department for data entry into the computer system. The data input in the computer system is used to prepare labour cost records by cost centre, the payroll journal and the payslips. The financial accountant compares the payroll joumal with the payslips and then returns them to the Manager of the IT department. The payslips are then distributed to the employees by the Manager of the IT department (C) The company has a distribution depot in Hobart and employs, Han Soilo, as its branch manager and Leila Vaddagh as his head sales assistant. The branch uses a bank account in Sydney to pay expenses. The account is kept in the name of "Leila-V- Special Account. To settle expenses, Leila uses online banking. In fact all banking correspondence from the banks regarding transactions of the sales depot get emailed to Leila Vaddagh. Leila reconciles the sales depot banking records with the bank statements. It is company policy to generate a cash report on a monthly basis for presentation and discussion at the finance meeting, which is held on the second Thursday at the end of the month at the head office in Perth. Leila emails the cash report two hours before the meeting