Reference no: EM132913166

Question - CTI's accounting department employs three staff members, each of whom has a computer:

1. Ms. Bellweather looks after sales. The company's truck drivers load their trucks every morning, with the shipper checking and signing for inventory loaded on the truck based on the order forms generated and printed from the automated order entry system. The truck drivers deliver product to the stores on their route, preparing invoices for the amounts delivered to each location. The original is left with the store and Ms. Bellweather receives copies signed by the store to acknowledge receipt of the product. The truck drivers return any excess inventory to the warehouse, with the shipper again signing for quantities returned to stock. Ms. Bellweather records the invoices in a database, with each driver's total sales summarized by quantity and by dollar value. She then reconciles the quantities sold to the quantities loaded versus returned at the end of the day. Any discrepancies are followed up by the controller. Ms. Bellweather also reconciles cash received to the drivers' summaries that break out cash sales from sales on credit.

2. Ms. King maintains the accounts receivable sub-ledger, using a standard computer software package. She obtains a listing of credit sales from Ms. Bellweather on a daily basis and enters it into the receivable sub-ledger. She prints off a receivables listing on a weekly basis, which is then reconciled to the general ledger control account, with the reconciliation reviewed by the controller. She also prepares the payroll input, with a bank payroll service used to prepare the direct deposits, payroll summary, source deduction remittances, and annual T-4 reporting. Ms. King reconciles each payroll summary to her input documents to ensure that the payroll is accurate and complete.

3. Mr. Dong maintains the accounts payable sub-ledger, again using a standard computer software package. Mr. Dong also opens the mail and prepares a summary of cash receipts, which is provided to Ms. King for updating receivables. Mr. Dong then prepares the deposits and gives them to the president, who makes the deposits on a daily basis. The general ledger is maintained by Mr. Dong on a software package purchased several years ago. Mr. Dong signs most of the cheques and reconciles the bank account every month.

Task - Please identify any strengths and weaknesses in the above accounting department, along with your recommendations on how to deal with any issues.