Sandwich Aat Essay

1379 Words Jul 14th, 2013 6 Pages
Terms of Reference

1. The objective of this report is to investigate and review the effectiveness of the internal controls and the structure of the accounting systems and procedures within Sandwich Master Ltd (SML). The report will highlight areas of concern within the organisation and any lapses in relationship or communication problems between various accounts functions of SML accounts team. The report is being prepared on the instructions of George Bartlett, the finance Director and part owner of SML.

2. The report is also prepared to meet the AAT requirements, as stated in the internal controls and accounting systems unit.

3. The report will seek to make recommendations that will help the organisation
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4.3.2 The head office is in Nottingham. This is where management and accounts departments are situated. The business has a relatively flat and centralised structure. Where all five senior accounts staff report to the company accountant, who approves all payments along with the preparation of the monthly management accounts and reports for the finance director, George Bartlett who has overall responsibility for accounting procedures and systems. (Organisation chart Appendix1)

4.4 Systems Structure:

The system structure is a decentralised one where all systems have their own computers. There are 38 computers in all in the head office in Nottingham and one for each of the retail outlets. All the computers in the organisation are running on the windows vista system. Inventories and purchase orders are made using MS Excel Spread sheets.

4.5 External Regulations affecting the organisation:

4.5.1 The Company’s Act 2006, this Act sets out the way in which Sandwich Master Ltd should prepare its financial statements. A change in the Act or any amendments in legislation should therefore be known to the company.

4.5.2 The Data Protection Act 1998, this Act is an Act of parliament which defines UK law on how to process data on individuals. The Act places a number of obligations on organisations on the way they handle

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