Cookridge Carpets- Aat Internal Control Accounting System
3 - Executive Summary
4 – Background of the company
5 - The Accounting System & Internal controls
6 – Evaluation of the Accounting Systems
7 – Strengths & Weakness in the Accounting System
8 – Recommendations for Improving the cash handling, Payroll & Accounting Systems
9 – Cost benefit analysis
10 - Conclusion
11 - Appendices
1) Terms of Reference
This project has been prepared to fulfill the criteria of Unit 10, managing systems and people in the accounting environment of Level 4 AAT.
The objectives of this report are:
To identify the current weaknesses in the payroll and cash handling systems within Cookridge Carpets …show more content…
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. It consists of different levels of seniority of people. There is a centralized accounting department (back office), which leads to a customer facing area – the shop floor.
There is a big risk of Data protection being breached here, leaving a potential risk open to fraud as customers can make their way to the toilets and pass by the open door to the accounts office where customers personal details, including bank details could be on show for the public to see, and possible steal.
The sales that are made on the shop floor, either by sales people or via the internet will be recorded by the accounting department team on their systems, along with many other events that are involved in the production of the accounts.
This information will be presented in the income statement, this establishes the profits and losses that the company will make at any given period of time during the accounting period. The team will have responsibilities for producing the statement of financial position, showing the assets and liabilities within the business and how much they equate to.
All this information is extracted from a trial balance. The team