1. David is the chairman for the Junior Soccer Club, which is organizing a tournament for junior players to be held at the National Stadium. He is also responsible for selling the tickets, at the Stadium, on the day of the games. 2. On the day of the game, David arrives a few hours before the event and meets secondary school students outside the gate. He pays each student a wage for selling the tickets and a bundle of tickets to sell. The thickness of the bundle usually determines the size of the crowd. He gives his sellers a few $1 coins and $2 notes to use as a ‘float’ because tickets are $3 each and people often give $5 or $10 notes when buying them. David simply ‘guesses’ how much cash to give to each seller. 3. After the tournament, David goes back to the gate to collect the takings. There is no chance the sellers can ‘leave’ with the money because David knows them personally. He puts all the takings in a bag, which is then given to Sam, the treasurer of the Soccer Club. The sellers throw away any unsold tickets as they are only good for that tournament, and cannot be sold after the tournament. 4. Sam banks the money the following morning and writes out cheques to the sellers, printers and other creditors. David pre-signs about 10 to 15 cheques for Smith because they do not often meet each other. After the accounts are completed, David finds out that the show was a financial loss. Required: a. Identify and describe five (5) major weaknesses in the accounting and administrative controls existing in this case study. Discuss five (5) specific changes that you would encourage him to make to improve control.
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