Reference no: EM132959318

RumaTujoh Manufacturing (M) Sdn Bhd is a company listed on the main market of Bursa Malaysia Securities Berhad. With a market capitalization of RM 100 million, RumaTujoh Group's core businesses are in the aluminum manufacturing and property development industries. RumaTujoh Manufacturing (M) Sdn Bhd's production process starts with the production planning and control department, where the clerk decides the materials and operations needs based on the marketing department's sales forecast and the storeroom's inventory status report. The clerk examines the information and produce a hardcopy of purchase requisition, which she sends to the purchasing department. The clerk then accesses the bill of materials and route sheets files from her department's computer and prints out the following documents - work orders, move tickets, and material requisitions. Each document is prepared in three copies. Cost accounting department receives one copy of the work order, move ticket, and materials requisition paper. The remaining copies are sent to the work center supervisor.

• Production work commences once the work centre receives the three mentioned documents. The employees handed the copy of material requisition to the inventory stores department in return for the raw materials needed for the production. In the event where the work center requires additional materials, all they need to do is to request from the inventory store clerk. To avoid delays in the production process, the clerk fulfills their request instantly. Unused materials from the production are kept in the inventory stores department for future production. Once the job passes through all production stages and the tasks are completed, the work center supervisor transfers the finished product to the finished products warehouse. The work center keeps a copy of the of work order, move ticket, and materials requisition. The remaining copies of the documents are sent to the cost accounting department.
• In the inventory storeroom, the materials will be released only when the storeroom clerk receives the material requisition document. Then, the clerk updates the raw material inventory records and files materials requisitions in the storeroom. Finally, he creates a journal voucher and sends it to the general ledger apartment at the end of the day.
• When the cost accounting clerk receives documents from the production planning department and work centre, he immediately files and keeps the documents safely for audit trail purposes.

Required:

Problem a. Explain five (5) weaknesses and the risks associated with the weaknesses present in RumaTujoh Manufacturing (M) Sdn Bhd. Propose five (5) relevant control procedures to overcome each of the weaknesses.