Financial System and Auditing

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Executive Summary………………………………………………………………………. Introduction to Tesco…………………………………………………………………….. Effectiveness of Accounting System at Tesco ………………………………………….. The main financial statements of Tesco. ………………………………………………...

Financial statement………………………………………………………………..
Benefits of the financial statements………………………………………………
Income statement …………………………………………………………………
Benefits of the income statement…………………………………………………
Cash Flow statements…………………………………………………………….
Benefits of the financial statement………………………………………………. Accounting concepts……………………………………………………………………… Factors that influence the nature and structure of accounting system………………..

Management control system…………………………………………………………….. Types of business risk…………………………………………………………………….
Internal risk……………………………………………………………………….
External risk……………………………………………………………………… Cadbury code…………………………………………………………………………….. Control system and procedure ………………………………………………………….. Types of fraud……………………………………………………………………………. Detection and implication for the fraud…………………………………………………

Introduction to audit…………………………………………………………………….. Right and duties of the auditor…………………………………………………………. Liability of the auditor…………………………………………………………………… Internal audit and external audit……………………………………………………….. Audit planning and audit testing of Tesco………………………………………………

Statutory Audit Report………………………………………………………………….. Audit Report of Tesco ........................................................................................ Reference…………………………………………………………………………………

Executive Summary

Following audit report is made using available media information. This gives full audit report on management control system which will evaluate the effectiveness of accounting system, business methods for detection for fraud and planning and conduct of an audit process as well as purpose and content of a statutory audit report of Tesco Supermarket. Past failures in the process of auditing financial transactions have serious consequences on businesses. As a result of that companies fall down and loss of jobs and money and therefore there is a need to regain the trust required in the financial system. This report is considered on audit report on management control system of Tesco Supermarket.

Introduction to Tesco

Jack Cohen who is from the East End of London is the creator of the world famous Tesco. In the present Tesco is the largest British retailer equally in global sales and domestic market share. It is international grocery and general commodities retail chain which is based in United Kingdom. Jack Cohen the founder of the Tesco started to sell groceries in the market of the East End. He started this one man business in 1919 right after the 1st World War and at this time quantity of foods was low. He conducted his business by selling damaged goods at affordable prices.

Even though Tesco is firstly specialized in foods now it has spread in to many areas like clothes, consumer electronics, internet service and consumer financial services. It is also renting and selling compact discs, music downloads, consumer telecoms, budget software as well. Tesco plc is the world’s third largest grocery retailer and after the Home Depot and Wal Mart of United States and Carrefour of France it is the fourth largest retailer.

In 1924 new brand called Tesco come out to the market after Jack Cohen purchased tea form a businessman called T.E. Stock well. The brand name Tesco was created by first two letters of Jack’s surname and the first three letters of the supplier’s name. In 1929 Burnt Oak, London the first Tesco store was open and it came to London Stock Exchange in 1947 as Tesco Stores (Holdings) Limited and at that time in St. Albans the first self service store opened. The first Supermarket was opened in 1956 in Maldon.

Effectiveness of Accounting System at Tesco

Accounting is the field of study which involves the preparation and use of financial data for decision making...
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