Cookridge Carpets Ltd
A report analysing the Internal Controls in place and evaluating the Accounting Systems.
I testify that the following report is my own unaided work and a true reflection of the organisation.
Word Count – 4570.
Contents: 1. Terms of Reference 2. Methodology 3. Executive Summary 4. Introduction to the Organisation 5. The Accounts Department 6. Review of the Accounting System 7. Internal Control and Analysis of Fraud 8. Recommendations to Improve 9. Cost benefit Analysis 10. Appendices
1. Terms of Reference 2.1 This report investigates the accounting system in place within Cookridge Carpets Ltd with regard to making recommendations to improve the system and the …show more content…
When asked to use the petty cash tin, the staff member complained and said there was no cash left in the tin. £10 was taken from the till with only a note being left explaining why the till was £10 short. * Payments to suppliers and income from customers are not being recorded properly which will show incorrect figures in final accounts. * One of the members of the accounts department, Sonja had booked a holiday over Christmas and had completed pay packets beforehand. This could mean that some pay packets were not accurate. * Some cheques have also not been accounted for so they don’t know what the cheques have gone towards. * Because some hours worked are incorrectly recorded some staff are not paid correct amounts
6.5 There were also weaknesses shown in the SWOT analysis within the system regarding training. * Some of the staff in the accounts department at Cookridge Carpets Ltd have not yet been trained in accounting. Due to the lack of knowledge in this department there is a greater risk of mistakes being made, and because it is the accounts department some of these mistakes could end up being quite costly. If the staff were more qualified these mistakes could be rectified and even avoided in the first …show more content…
After the centralised accounting system has been implemented all members of staff should be paid by BACS. (Banker’s Automated Clearing Systems). This will ensure all wages will be paid straight into bank accounts to reduce the use of cash and cheques. A major benefit of implementing BACS will be that cash will no longer be calculated incorrectly, there will be no way to steal cash and the chance of fraud will be greatly reduced.
8.1.8. Petty cash is not being recorded correctly so there should be a system in place where everyone knows how much petty cash there is currently available and what to do when you are in need of petty cash. The chance of theft will become very slim and there should be no reason to take out money from the tills.
8.1.9. Tills should be accounted for at the end of day and recorded. This will ensure you have an accurate representation of how many sales you’ve made and how well your doing as a business. This should be done by staff when they are finished and they should be paid for this. This will ensure you reduce the risk of errors and fraud.
8.1.10. Suppliers and customers should only be added to the database under the authority of the owners and or the senior accounts
A report analysing the Internal Controls in place and evaluating the Accounting Systems.
I testify that the following report is my own unaided work and a true reflection of the organisation.
Word Count – 4570.
Contents: 1. Terms of Reference 2. Methodology 3. Executive Summary 4. Introduction to the Organisation 5. The Accounts Department 6. Review of the Accounting System 7. Internal Control and Analysis of Fraud 8. Recommendations to Improve 9. Cost benefit Analysis 10. Appendices
1. Terms of Reference 2.1 This report investigates the accounting system in place within Cookridge Carpets Ltd with regard to making recommendations to improve the system and the …show more content…
When asked to use the petty cash tin, the staff member complained and said there was no cash left in the tin. £10 was taken from the till with only a note being left explaining why the till was £10 short. * Payments to suppliers and income from customers are not being recorded properly which will show incorrect figures in final accounts. * One of the members of the accounts department, Sonja had booked a holiday over Christmas and had completed pay packets beforehand. This could mean that some pay packets were not accurate. * Some cheques have also not been accounted for so they don’t know what the cheques have gone towards. * Because some hours worked are incorrectly recorded some staff are not paid correct amounts
6.5 There were also weaknesses shown in the SWOT analysis within the system regarding training. * Some of the staff in the accounts department at Cookridge Carpets Ltd have not yet been trained in accounting. Due to the lack of knowledge in this department there is a greater risk of mistakes being made, and because it is the accounts department some of these mistakes could end up being quite costly. If the staff were more qualified these mistakes could be rectified and even avoided in the first …show more content…
After the centralised accounting system has been implemented all members of staff should be paid by BACS. (Banker’s Automated Clearing Systems). This will ensure all wages will be paid straight into bank accounts to reduce the use of cash and cheques. A major benefit of implementing BACS will be that cash will no longer be calculated incorrectly, there will be no way to steal cash and the chance of fraud will be greatly reduced.
8.1.8. Petty cash is not being recorded correctly so there should be a system in place where everyone knows how much petty cash there is currently available and what to do when you are in need of petty cash. The chance of theft will become very slim and there should be no reason to take out money from the tills.
8.1.9. Tills should be accounted for at the end of day and recorded. This will ensure you have an accurate representation of how many sales you’ve made and how well your doing as a business. This should be done by staff when they are finished and they should be paid for this. This will ensure you reduce the risk of errors and fraud.
8.1.10. Suppliers and customers should only be added to the database under the authority of the owners and or the senior accounts