Response to the following problem:
Yamaha Marineland makes all sales on credit. Cash receipts arrive by mail. Kenneth Sartain in the mailroom open envelopes and separates the checks from the accompanying remittance advices. Sartain forwards the checks to another employee, who makes the daily bank deposit but has no access to the accounting records. Sartain sends the remittance advices, which show cash received, to the accounting department for entry in the accounts. Sartain's only other duty is to grant sales allowances to customers. (Recall that a sales allowance decreases the amount receivable.) When Sartain receives a customer check for less than the full amount of the invoice, he records the sales allowance and forwards the document to the accounting department.
Required:
You are a new employee of Yamaha Marineland. Write a memo to the company president identifying the internal control weakness in this situation. State how to correct the weakness.