An example of a competent submission for a previous scenario
INDEX 1 2 3 4 5 6 7 8 9 10 Terms of Reference Executive Summary Methodology Introduction Structure and purpose of the Accounts Payable Function Current Accounts Payable system Weaknesses and improvements to the current Accounts Payable system Recommendations and Cost Benefit analysis Appendices Mapping to the assessment criteria
TERMS OF REFERENCE This report has been prepared to cover the requirements of the Internal Controls and Accounting systems learning and assessment area of Level 4 AAT Diploma in Accounting. The report looks at the need to improve the Accounts Payable function of Cookridge Carpets Limited.
EXECUTIVE SUMMARY The information contained in this report analyses the current Accounts Payables systems at Cookridge Carpets Limited. It looks at the weaknesses in the system in terms of staffing, training, purchasing and accounting procedures, internal control, management information and information technology. Improvements have been suggested for each area to reduce the risk of errors and fraud occurring. The aims of the improvements are to ensure that the organisations requirement for accounts information is being achieved and to ensure that useful information is easily available. Several recommendations have been suggested for initial implementation. These cover specifically the need to ensure staff have the right knowledge and equipment to perform their jobs efficiently and effectively. These recommendations are the introduction of an integrated accounts package, backup storage, staff training and staff attendance. There is also the recommendation for documenting the accounting processes of the organisation. These procedures can then be used for guidance and training.
METHODOLOGY To begin this project the Senior Accounts Clerk examined the evidence provided and identified the current Accounts Payable process. The weaknesses of this system were identified along with possible ways to improve these. Recommendations were them made for improvements to areas that would give the most benefit to the accounts department and business as a whole. Various resources were used to produce this report including books, websites and the case study information itself. A list of the books and websites used can be found in the Appendix. Thank you to Alan Reed for the support he gave.
INTRODUCTION Cookridge Carpets Limited is a family run business, established in 2007. Its business is as a retailer of large carpets, soft furnishings and bed dealership. It is the main dealership for Memo@memory foam beds and mattresses in the area. The company aims to provide a good service to its customers. Customers are members of the general public who visit their showroom, and more recently who purchase over the internet
The business employs 20 people, both full and part time. The majority of these PIC 1.3 are in the Sales Departments with three part time staff in the Accounts Department. A Senior Accounts Clerk has recently been recruited to supervise the day to day running of the accounts office. The initial tasks being to review the accounting function. The aim of this report is to highlight the problems with the current Accounts PIC 1.3 Payable System, and to provide recommendations for improvements. These improvements will ensure that the accounts are produced in-line with current legislation and provide relevant up to date information to the management of the organisation. Management can use this information to base future business decisions to ensure the success of the business.
STRUCTURE AND PURPOSE OF THE ACCOUNTS PAYABLE FUNCTION Cookridge Carpets is a small family run business supplying goods to the public. PIC 1.1 This results in a very flat organisational structure....