AAR Registration Number:
Centre: Kaplan Financial, London
1.Terms of Reference3
5.Review of Payroll System10
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 Analysis20
1.Terms of Reference
1.1This report has been complied to review the Association of Accounting Technician Internal Control and Accounting Systems Unit.
1.2The report will review the payroll area and provide recommendations for Cookridge Carpets Limited.
1.3The unit mapping document of Principles of Internal Control (knowledge) PIC is presented in Appendix A.
1.4The unit mapping document of Evaluating Accounting Systems (skills) EAS is presented in Appendix B.
2.1In order to complete this report I initially reviewed the Internal Control and Accounting Systems (ICAS) assessment book for Cookridge Carpets Limited.
2.2I completed the ICAS Report Plan to obtain further guidance from the tutor. Using the additional guidance I reviewed several websites and written material.
2.3Further research was undertaken by using the internet and a number of books.
2.4I used Companies House to obtain further information about statutory regulations and liability of limited companies.
2.5Wikipedia was used to gain further data on financial statements and their purpose.
2.6Her Majesty’s Revenue and Customs (HMRC) and Sage websites was used to collate information on Payroll software and accounting packages.
2.7For details around IT Networking I researched the IBM and Dell websites.
2.8I used the books to get information on financial statements.
2.9I analysed the case study for potential fraud and reviewed the IBM website as suggested by the case study.
2.10The bibliography is layout in Appendix C.
3.1There are a number of areas for improvement that need to be addressed by Cookridge Carpets Limited.
3.2The 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.
3.3Staff 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.
3.4Staff 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.
3.5There 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.
3.6There 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.