Cookridge Carpets

 Cookridge Carpets Essay

Evaluating and increasing weaknesses in the accounting system at

Submission of this survey is for examination of competence in AAT Learning and Assessment Region " Inner control and accounting systems”.

List of articles

Terms of ReferencePage

Executive SummaryPage

MethodologyPage

Background for the OrganisationPage

Analysis of the current accounting systemPage

Weaknesses & Recommendations Web page

Appendices *

Terms of Reference

Business Summary

The purpose of the report is assessment the accounting system, identify problems and make advice in the existing accounting system.

Areas beneath review:

Protection of Accounts Office

Accounting Systems being used

Payroll Devices

Training

Funds Handling

Suggestions:

The buy new accounting software

Boost Staff Teaching

Follow inner systems, plans and methods

Segregation of Duties

Results suggest the current accounting area is actually a concern and the recommendations must be carried out immediately to remove these concerns. The recommendations is going to reduce the risk of fraud, and increase the efficiency of the accounting function. Total better interior control and supervisor would protect Cookridge Carpets resistant to the potential of fraud.

Methodolgy

To review the accounting program for Cookridge Carpets

Analyze & Go through Internal Control & Accounting Systems

Study the internet for relevant textual content

REPORT

1 . 1 Inside an organisation the accounting system carries out a number of functions, a lot of which incorporate with other inside functions to give accurate monetary information intended for the company. The main aim of the accounting system is to record and keep accurate monetary records of the organisations business transactions, for instance , prepare the morning books, chase outstanding customer, pay provider accounts, put together management information and process the salaries.

Purchase Journal, Sales Journal, Cashier, Payroll, Costing and financial accounting are normal functions operated in the accounting system.

The smoothness of those functions may be the responsibility of the management.

1 . 4 Although each function is specific they do combine with other internal functions in the organisation, as an example, the obtain ledger and costing features both give internal support for the production department by allowing correct budget monitoring and purchasing inventory. The sales department of the organisation which is responsible for the digesting of cash Product sales and giving balances are both supported from the Sales Ledger and Cashier of the accounting system.

Payroll in the accounting system works with with recruiting who guarantee employees are paid and the financial accounting function with the accounting system merges with management letting them provide reviews.

The productivity of the accounting system will rely quite a lot on the way the organisation can be structured.

Tiny organisation will probably be run and structured in such method that the representative of the firm will manage and organise the business, with perhaps one other director employed to help, for instance , a financial movie director to run the accounting program. These organisations are methodized from the best and have a fundamental structure. If the organisations are larger, substitute structures evolve, in such occurrences; the structure will probably be a flat structure or a hierarchical structure.

A set structure can be powered by managing organization. The larger...