Irish Imports is an importer of silver, brass, and furniture items from Ireland. Kathleen O'Shea is the general manager of Irish Imports. O'Shea employs two other people in the business. Molly Fitzpatrick serves as the buyer for Irish Imports. In her work, Fitzpatrick travels throughout Ireland to find interesting new products. When Fitzpatrick finds a new product, she arranges for Irish Imports to purchase and pay for the item. She helps the Irish artisans prepare their invoices and then faxes the invoices to O'Shea in the company office.
O'Shea operates out of an office in Boston, Massachusetts. The office is managed by Maura Riley, who handles the mail, keeps the accounting records, makes bank deposits, and prepares the monthly bank reconciliation. Virtually all of Irish Imports' cash receipts arrive by mail-from sales made to Target, Pier 1 Imports, and Macy's.
Riley also prepares checks for payment based on invoices that come in from the suppliers who have been contacted by Fitzpatrick. To maintain control over cash payments, O'Shea examines the paperwork and signs all checks.
Requirement
1. Identify all the major internal control weaknesses in Irish Imports' system and how the resulting action could hurt Irish Imports. Also state how to correct each weakness.