Internal Control & Accounting Systems – Project
1 Terms of Reference
2 Executive Summary
4 Outline of Cookridge Carpets
5 Weakness of Current Accounting systems
7 Cost Benefit Analysis
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 AAT Level 4.
The report identifies areas which could be altered to improve the company’s financial affairs.
2. Executive Summary
Accounting and recording systems were evaluated at Cookridge Carpets to investigate what improvements could be made.
3. Outline of Cookridge Carpets - Introduction
Cookridge Carpets LTD is a carpet, soft furnishings and bed dealership in Southampton. It is a limited company and has been trading since 2007. It was set up by two brothers: Peter Cookridge and John Cookridge.
Having set up just five 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.
The business employs 20 members of staff: 9 direct sales staff, 3 internet sales staff, 2 cleaners, 2 delivery drivers, 1 accessories salesperson, and 3 part-time staff in the small accounts department. See appendix 1 for the organizational chart.
The company has a flat structure, which means that every member of staff can communicate with the owner directly. However, all structure of an organization is more hierarchical, with more levels of authority, while a flat structure has very few different levels, but more people in each level.
The accounts department is situated on the first floor on the show room. Access to the...