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Okawa Limited is a leading automotive repair centre in Victoria. The Okawa manager is responsible for raising the initial repair orders which are then sent to the administration area for invoicing.
Your initial review of the business has highlighted the following risks:
(i) Non-collectability of debts;(ii) Overpayment of overtime to employees;(iii) Inventory being stolen; and(iv) Payments being made to suppliers prior to receipts of goods.
Required:
Problem 1: For each of the risk identified above in i-iv, determine a practical preventative internal control procedure that would assist in mitigating the risks identified above.
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