1. Terms of Reference
1.1. The researcher made investigation on the effectiveness of the internal
Controls and accounting system of Cookridge Carpets Company. It also has
some additional contents such as recommendations that helps the company
to improve its strengths and weaknesses to protect the company’s reputation.
1.2. The researcher also investigated on the stakeholders of the Cookridge Carpets company, both internal and external. The stakeholders play a very
important role in helping the company’s growth.
1.3. The report also investigates that the costs and benefits to Cookridge Carpets and stated that fraud is a major threat of the company. It is also been recommended by the researcher the terms in which this risks should be avoided.
1.4. Lastly the researcher also investigated that the requirements of the internal Controls and Accounting systems Paper is part of the AAT Level 4 Diploma in Accounting.
2. Executive Summary
2.1. This report investigates the effectiveness of the internal controls of the accounting systems of Cookridge Carpets company. The recommendations are also made to show ways in which the Cookridge Carpets company can improve its system and performance. It is investigated that Cookridge Carpets company uses the centralized accounting system. That is, its accounting system is done in one place. As findings of the use of centralized accounting system were made, it is recommended that the accounts staff of Cookridge Carpets should be trained and be qualified in order to be
Competent on their work. Thus improve the performance of the company.
2.2. The researcher recommends that the Cookridge Carpets company should
maximize its security system to reduce the risks of fraud within the company. As well as BACS payments system should be used so that employees and suppliers are paid directly into their own accounts. This will minimize the use of cheques and cash as the way of payment hence improving the company’s payment control system.
2.3. If there is maximum security within the Cookridge Carpets company, this will boost the staff members morale and improve the credit control, payments to suppliers and lastly reduce the risk of fraud within the company.
3.1. The researcher used the internet to research the data on how companies
run or perform their its business.
3.2. The researcher used books as a reference as an addition to find out the
information to help with the report.
3.3. The researcher also interviewed Managers from different companies on
how they run their business and what is expected in order to run a successful business.
3.4. A questionnaire was also produced by the researcher and sent to both Internal and external stakeholders to find out their different strategies Of running a successful business.
4. Introduction to the Organisation
4.1. Cookridge Carpets company is a large carpets, soft furnishings and bed dealership in Southampton. It is a main dealer for Memo@memory foam Beds and mattresses in the area and having been established in 2007, it has
been trading for the past three years. It is a private limited company set by
two brothers, Peter and john Cookridge.
4.2. The two brothers purchased a large plot of land on which they developed
An air craft hangar sized building to use as the carpet and bed showroom.
They started out selling carpets and then expanded into beds and soft
Furnishings. In February 2010 Cookridge Carpets Company was asked
by Memo Beds to become the main dealership for Southampton as the
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