Aat Icas Cookridge

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5 Introduction
5.1 Cookridge Carpets LTD operates in the Sofa, Carpets and Soft Furnishing retail industry, the original company mission statement was “To provide an excellent level of service to all customers, whether they are spending £5 or £5,000 – and to provide carpets, beds and soft furnishings that make a house a home.” And it has not changed. There are a large amount of national retailers, in both sofa retail, carpet retail and the combined business. This makes it a very competitive market place with a limited number of customers being chased by many retailers. The company’s retail premises are secure and owned outright. Having set up just three years ago in 2007 in the Southampton area, Cookridge are still a small company in this industry. To compete in this market Cookridge offer credit terms to all customers and with web retail and dealership contracts together with the company’s industry contacts help to maintain a competitive edge.

5.2 The company operates within a functional structure (Appendix 1)

6 Accounting Systems
The accounts department, being divided into three sections. •Sales and Credit Control
Purchasing/Cashier
Payroll
Due to the small number of staff in the department, duties have not been segregated sufficiently to reduce the risk of fraud occurrence. There is no integrated computer system, each computer works on a standalone basis

Sales Ledger/Credit Control
The creation of credit accounts, which is carried out by the same staff member responsible for carrying out the credit reference check, has no authorisation process in force after the credit check; this could lead to fictitious clients or bad credit clients being accepted. The trade debtors and credit control are managed by the same member of staff, this lack of segregation of duties coupled with the lack of credit limits on customers has lead to trade debtors reaching excessive levels, and currently this figure stands...
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