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$$ Warehousing. Warehouse personnel update the inventory master file for inventory purchases and sales, confirm availability of materials to fill sales orders, and establish back orders for sales orders that cannot be completed from stock on hand. Warehouse personnel gather and forward inventory to Shipping and Receiving along with the corresponding sales orders. They also update the inventory master file for merchandise returned to Receiving.$$

$$ Shipping and receiving. Shipping and Receiving accepts inventory and sales orders from Warehousing, packs and ships the orders with a copy of the sales order as a packing slip, and forwards a copy of the sales order to Billing. Customer inventory returns are unpacked, sorted, inspected, and sent to Warehousing.$$

$$ Accounting. Billing prices all sales orders received, which is done approximately $5$ days after the order ships. To spread the work effort throughout the month, customers are placed in one of six $30-$day billing cycles. Monthly statements, prepared by Billing, are sent to customers during the cycle billing period. Outstanding carry forward balances reported by Accounts Receivable and credit memos prepared by the credit manager are included on the monthly statement. Billing also prepares electronic sales and credit memos for each cycle. Electronic copies of invoices and credit memos are forwarded to Accounts Receivable for entry into the accounts receivable master file by customer account. An aging report is prepared at the end of each month and forwarded to the credit manager. The general accounting office staff access the accounts receivable master file that reflects total charges and credits processed through the accounts receivable system for each cycle. General accounting runs a query to compare this information to the electronic sales and credit memo and posts the changes to the general ledger master file.

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Part A:$$ What are the internal control strengths in PEI$$s system?$$ Find at least five ways in which PEI$$s processes are exhibiting good internal control.$$

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Part B:$$ What are the internal control weaknesses in PEI$$s system?$$ Find at least five weaknesses in PEI$$s processes and suggest ways to correct them.

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Weakness $4$:$$

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Weakness $5$:

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