Internal Control in Accounting System

1 TERMS OF REFERENCE

| terms of reference: |
|This report has been prepared to cover the assessment requirements of AAT Learning and Assessment Area ‘Internal Control and Accounting Systems.’ |
|The objectives of this report are to: |
|a)analyse accounting system and effectiveness of its internal control |
|b) to identify the strengths and weaknesses of accounting system and to recommend necessary improvements or funding changes. |
|5. |
|To identify methods for implementing its recommendations and strategies. |
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4. Introduction

4.1 Cookridge Carpets LTD is a company owned by two brothers Peter and John Cookridge who specialised in selling carpets, beds and soft furniture in Southampton. It is the main dealer for Memo@memory foam beds and mattresses in the area and has been trading for the past three years.

4.2 Capital for setting the business they were using from John redundancy money plus inheritance they received and plus mortgage.

4.3 Company has many suppliers but main supplier is Memo Beds who supplies products on line of