The third weakness is detected in the Work Centres. Saga Fly Fishing, Inc. not filed the work order after it has been received from the Production Planning and Control Department. This is because the Production Planning and Control Department and also Work Centre Department must have record of it. If not it will cause an audit trail to be happen. Thus, the work order supposedly must being filed in the Work Centre.
Moreover, Saga Fly Fishing, Inc. has lack of supervision to observe or check the employee time cards and job tickets in the Work Centre. According to James Hall (2013), in order to promote accurate employee time cards and job tickets, timekeeping activities must being observe and review by supervisor. This is because it is the supervisor …show more content…
also has weakness regarding the accounting records. The company does not have the proper and sufficient documentation for its source documents. Saga Fly Fishing, Inc. did not perform the physical control technique which is pre-numbering the documents. According to Claudia Gilbertson and Mark Lehman (2008), pre-numbered documents meant the source documents has number printed on it and help to ensure transactions are recorded correctly. Documents such as material requisition, production schedule, work order, move ticket and others should have the number code on it, so that Saga Fly Fishing, Inc. could easily identify the document and minimize future errors that may occur. Not only that, the audit trail process can be performed much faster by the independent auditors.
Last but not least, the access control does not exist in Saga Fly Fishing, Inc. The management and employee can easily access the information throughout the departments. No limitation of access control especially in the sensitive areas such as storekeeping, work centre and inventory control may endanger the company’s assets (inventory and cash especially) and information. Proper actions or measures need to be taken into consideration. For instance, implementation of the electronic sensor and alarm, identification badges, CCTV, security guards, backup schedule and so
Moreover, Saga Fly Fishing, Inc. has lack of supervision to observe or check the employee time cards and job tickets in the Work Centre. According to James Hall (2013), in order to promote accurate employee time cards and job tickets, timekeeping activities must being observe and review by supervisor. This is because it is the supervisor …show more content…
also has weakness regarding the accounting records. The company does not have the proper and sufficient documentation for its source documents. Saga Fly Fishing, Inc. did not perform the physical control technique which is pre-numbering the documents. According to Claudia Gilbertson and Mark Lehman (2008), pre-numbered documents meant the source documents has number printed on it and help to ensure transactions are recorded correctly. Documents such as material requisition, production schedule, work order, move ticket and others should have the number code on it, so that Saga Fly Fishing, Inc. could easily identify the document and minimize future errors that may occur. Not only that, the audit trail process can be performed much faster by the independent auditors.
Last but not least, the access control does not exist in Saga Fly Fishing, Inc. The management and employee can easily access the information throughout the departments. No limitation of access control especially in the sensitive areas such as storekeeping, work centre and inventory control may endanger the company’s assets (inventory and cash especially) and information. Proper actions or measures need to be taken into consideration. For instance, implementation of the electronic sensor and alarm, identification badges, CCTV, security guards, backup schedule and so