A review of the Payroll System within Cookridge Carpets Limited
AAR Registration Number:
Centre: Kaplan Financial, London
Terms of Reference
Review of Payroll System
Appendix A - Mapping document: Principles of Internal Control (knowledge) PIC
Appendix B - Mapping document: Evaluating Accounting Systems (Skills) EAS
Appendix C – Bibliography
Appendix D - Cookridge Carpets Limited Organisation Chart
Appendix E - Cookridge Carpets Limited Accounts Department Organisation Chart
Appendix F - Fraud Matrix
Appendix G – Cost Benefit Analysis
Terms of Reference
This report has been complied to review the Association of Accounting Technician
Internal Control and Accounting Systems Unit.
The report will review the payroll area and provide recommendations for
Cookridge Carpets Limited.
The unit mapping document of Principles of Internal Control (knowledge) PIC
is presented in Appendix A.
The unit mapping document of Evaluating Accounting Systems (skills) EAS is
presented in Appendix B.
In order to complete this report I initially reviewed the Internal Control and Accounting Systems (ICAS) assessment book for Cookridge Carpets Limited.
I completed the ICAS Report Plan to obtain further guidance from the tutor. Using
the additional guidance I reviewed several websites and written material.
Further research was undertaken by using the internet and a number of books.
I used Companies House to obtain further information about statutory regulations and
liability of limited companies.
Wikipedia was used to gain further data on financial statements and their purpose.
Her Majesty’s Revenue and Customs (HMRC) and Sage websites was used to
collate information on Payroll software and accounting packages.
For details around IT Networking I researched the IBM and Dell websites.
I used the books to get information on financial statements.
I analysed the case study for potential fraud and reviewed the IBM website as
suggested by the case study.
The bibliography is layout in Appendix C.
There are a number of areas for improvement that need to be addressed by Cookridge Carpets Limited.
The accounts office is easily accessible to everyone, whether it is other staff or general public. It is recommended that the keypad lock is used to secure the office. The benefit of this will ensure that information is not obtained by unauthorised people.
Staff working within the accounts department do not have the necessary qualifications or appropriate training. Investment in staff training is recommended to minimise and eliminate errors from occurring. Although, a cost is attached to training this outweighs the potential risks with reporting accounts with errors.
Staff are only responsible for their areas of work this poses risks and functions will not be undertaken. Recommendation is that staff “buddy up” for each other on periods of absence. Costs attached relate to training, but the business activity would be conducted as usual as result of fully trained staff.
There are no training manuals or documentation. It is recommended that training manuals are in place. The benefit of this is that staff have a reference point when they are unsure of what they need to do.
There are no contingency or disaster recovery plans in place. It is recommended that plans are documented and in place to ensure business continuity. The company will benefit from this as they will be able to continue in an emergency and all staff will know what their responsibilities are during this period.
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