There is a possibility for fraud to take place within Cookridge Carpets, as some of the controls within the accounting function are very weak. All drawers are lockable, and there is a safe in the office. The sage accounting system is not used to its full potential.
Sonja completes the pay packets for all staff, there is no practice put in place to have then checked, verified or counter signed. Record keeping systems, all records are kept in Microsoft office documents, 4 A clocking in system could be used, a cost and benefits package is shown in appendix 4, this would enable the correct wages are calculated each week.
The rest of the staff are paid monthly by cheque on the last day of each month. This will help to improve staff morale, in turn increasing productivity.
Sage 50 Accounts plus: The Account receivable clerk Stefan Kalinowski is responsible for preparing sales invoices, manage credit accounts, ensuring all payments are made within 90 days, and prepare monthly management information.
After an initial injection of money, sage 50 accounts plus would save the staff time as most tasks will be automated. It is presumed that once they are complete, that they are correct, they are then placed into the safe until Friday morning when they are handed out to staff.
Any member of staff could very easily get paid too much, or maybe even twice as Sonja is the only qualified member of staff to complete the wages.
The accounts office has a keypad on the door, this should be used and passcode changed on a regular basis. There is personal data about other members of staff held on her computer, which if accessed by any third party could be seen to breach the Data Protection Act.
By reviewing each section within the accounting system, it will be possible to identify weaknesses and suggest improvements to make Cookridge Carpets Ltd. Fraud is a criminal activity. Many of the tasks performed are repetitive, time consuming and rely on accuracy of data.
This way all tasks performed by the accounts staff can be consolidated onto one system. All pay packets should be checked by another competent member of staff in the accounting department.
All the staff apart from the accounts department are paid weekly in cash, pay packets are available from the showroom manager, Jim Andrews from The petty cash tin is lockable All computers can be password protected.
Sonja stores all payroll information on her computer. After assessing the benefits it is clear that by improving the efficiency and control over the systems that time and money would be saved, meaning it could be spent on other 10 Conclusion: The system and structure that a company chooses to implement will depend on the nature and size of the business.
There will be minimal training required for the sales team, which would mean money saved on overtime. The petty cash system is not set up properly allowing opportunities for theft.
Cookridge Carpets Ltd currently runs their accounting system using Microsoft office applications. The showroom is open 7 days a week.
All computers are on a standalone basis, these could be upgraded so that they all link up together. Any training would have a cost effect on the company, being the wages paid to the staff for the time to train them, however, as the accounts department are salaried, this will not have an effect on the companies overall outgoings.
This means the information will be securely stored and protected, preventing possible fraud or error. When completed they should be locked away in the safe as suggested earlier. The company is expanding with many future opportunities for success. This will increase staff morale.
Sonja is the only person who is currently able to complete the payroll, as no one else in the accounts office has had any training, although Stefan is willing to undertake training so he can take some of the pressure off Sonja.
Date and time, day and time 12 or 24 hour format. As no records keeping system is in place, no one knows where the money is going, this needs addressing.
She is the only person on the organisation that is trained to operate sage payroll. There is an open invitation to theft. As there are no checks in place as to who receive their wages, this is a high-risk option as they could be given to family members or other workers by mistake.
Each stage includes a day version of sage 50 accounts, plus practice data to get some real hands on experience. The system needs to enable the following tasks to be completed in a timely manner.
Sonja has to go to the bank with a signed cheque to withdraw enough cash to be able to complete the wages for the staff that are paid weekly, this is a dangerous situation to be putting Sonja into every week, as there is the potential that she could be followed from the bank and have the cash stolen from her.
Some information is available from the Internet on site:. AAT level 4 Internal Control & Accounting Systems – Project Contents: 1 Terms of Reference 2 Executive Summary 3 Methodology 4 Outline of Cookridge Carpets. Essay Cookridge Carpets- Aat Internal Control Accounting System prepared to fulfill the criteria of Unit 10, managing systems and people.
Aat Project Based on the Internal Control of Cookridge Carpets Ltd; Aat Project Based on the Internal Control of Cookridge Carpets Ltd.
Words Nov 17th, 24 Pages.
1. Terms of Reference Cookridge Carpets- Aat Internal Control Accounting System Essay Words | 17 Pages. AAT level 4 Internal Control & Accounting Systems – Project Contents: 1 Terms of Reference 2 Executive Summary 3 Methodology 4 Outline of Cookridge Carpets 5 Weakness of Current Accounting systems 6 Recommendations 7 Cost Benefit Analysis 8 Appendices: SWOT analysis Company structure Terms of Reference This project.
Aat Project Based on the Internal Control of Cookridge Carpets Ltd Words | 24 Pages investigation on the effectiveness of the internal Controls and accounting system of Cookridge Carpets Company.
For a structure of the staff within Cookridge carpets, please see Appendix 1 5 The Accounting System & Internal Controls Cookridge Carpets Ltd is classified as a hierarchical structure as an organisation.Cookridge carpets aat internal control accounting