05 Jan Internal ControlAt Morris Mart Inc., all sales are
Internal ControlAt Morris Mart Inc., all sales are on account. Mary Morris-Manning is responsible for mailinginvoices to customers, recording the amount billed, opening mail, and recording the payment.Mary is very devoted to the family business and never takes off more than one or two days for along weekend. The customers know Mary and sometimes send personal notes with their payments.Another clerk handles all aspects of accounts payable. Mary’s brother, who is president ofMorris Mart, has hired an accountant to help with expansion.Required1. List some problems with the current accounts receivable system.2. What suggestions would you make to improve internal control?3. How would you explain to Mary that she personally is not the problem?
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