Finnish Imports is an importer of silver, brass, and furniture items from Finland

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Finnish Imports is an importer of silver, brass, and furniture items from Finland. Lois Ferguson is the general manager of Finnish Imports. Ferguson employs two other people in the business. Mandy Martin serves as the buyer for Finnish Imports. In her work, Martin travels throughout Finland to find interesting new products. When Martin finds a new product, she arranges for Finnish Imports to purchase and pay for the item. She helps the artisans prepare their invoices and then faxes the invoices to Ferguson in the company office. Ferguson operates out of an office in Brooklyn, New York. The office is managed by Sandra Moore, who handles the mail, keeps the accounting records, makes bank deposits, and prepares the monthly bank reconciliation. Virtually all of Finnish Imports’ cash receipts arrive by mail—from sales made to Target, Crate and Barrel, and Williams-Sonoma. Moore also prepares checks for payment based on invoices that come in from the suppliers who have been contacted by Martin. To maintain control over cash payments, Ferguson examines the paperwork and signs all checks.

Requirement
1. Identify all the major internal control weaknesses in Finnish Imports’ system and how the resulting action could hurt Finnish Imports. Also state how to correct each weakness.