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Keneilwe Khumalo, the bookkeeper, issues invoices, credit notes and collects cash from debtors. She recorded cash slip (CS371-402) as R25 500 on the 30 June 2018 in the business books. However, the internal auditor has noticed that cash slip (CS371-402) was recorded by the bank on the 15 July 2018 and that it actually amounts to R18 500. (4 2.3.1 As an internal auditor, explain TWO concerns you have over Keneilwe's duties 2.3.2 Identify TWO problems with the cash slip and give advices to solve them?

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Final answer:

The internal auditor expressed concerns over the lack of segregation of duties and accuracy in Keneilwe Khumalo's record-keeping. The cash slip had both the amount and timing discrepancies, which could be solved by implementing double-checking systems and timely reconciliation protocols.

Step-by-step explanation:

Concerns Over Keneilwe's Duties

As an internal auditor, two primary concerns with Keneilwe Khumalo's duties include the segregation of duties and accuracy of record-keeping. The fact that she issues invoices, credit notes, and collects cash might lead to a lack of segregation of duties, increasing the risk of errors or fraudulent activities. Additionally, the discrepancies in record-keeping, such as recording the wrong amount for cash slip (CS371-402), indicate a concerning lack of accuracy in financial documentation.

Problems with the Cash Slip

The two problems identified with the cash slip (CS371-402) are the discrepancy in amounts and the timing of the bank record. The cash slip was recorded in the business books as R25 500, yet the bank recorded it as R18 500. Moreover, there was a significant lag between Keneilwe's record date (30 June 2018) and the bank's record date (15 July 2018).

To address these issues, the following advice is provided:

  1. Implement a robust double-checking system where another employee verifies the amounts recorded before finalizing the entries.
  2. Establish a protocol for the timely reconciliation of records with bank statements to ensure discrepancies are identified and resolved promptly.

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