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Question - In the audit of Peacock Ltd you establish that the procurement department consists only of Brooke Peddlar, the company buyer, who has been with Peacock Ltd since the inception of the company. Although she is extremely busy, she has on more than one occasion declined management's offer to appoint an ordering clerk to assist her in the procurement department.
Peacock Ltd does not maintain a perpetual inventory system. Monthly stock counts are conducted in the raw materials warehouse by the raw materials warehouse manager, Kent, and in the finished goods warehouse by Doug, the finished goods warehouse manager.
Required - Identify two internal control weaknesses and explain the potential impact of these weaknesses on Peacock Ltd, i.e. explain what could go wrong (WCGW).
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