Review of Sandwich Master

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Internal Control And Accounting Systems

An Overview of the Sales Ledger and Credit Control
Sandwich Master Ltd

Word Count:

I confirm that this is my own work unaided for ICAS and that no additional support has been provided. I have read and understood the terms and conditions.

Contents

1. Terms of Reference3
2. Methodology3
3. Executive Summary3
4. Introduction4
5. Review of Current Accounting Systems4
6. Weakness4
7. Recommendations for Improvements4
8. Cost Benefit Analysis4
9. Appendices5
9.1. Project Proposal5
9.2. Organization Chart7
9.3. SWOT Analysis8
9.4. Market Research9
9.5. Fraud Matrix9
9.6. Action Plan9
9.7. Technical Notes9
9.8. Mapping Document10
9.9. Letter of Authenticity13

1. Terms of Reference
1.1 This report will focus on the sales ledger and credit control of Sandwich Master Ltd. It will review the weaknesses including risk of fraud, internal policies, work allocation, training and some IT issues. It will also provide recommendations based on those weaknesses in order to improve internal process and ensure compliance with internal policies. 1.2 A cost benefit analysis will be presented to show the benefits that the actions recommended can bring to the business. 1.3 Appendices and references to a mapping document will help comprehension and provide background for the analysis on this report. 1.4 This report also aims to cover the requirements of the Internal Controls and Accounting Systems learning and assessments of AAT Level 4 Diploma in Accounting.

2. Methodology
2.1 For this report an analysis of Sandwich Master’s accounts department was made to identify its main problems and recommend actions for improvements. For this purpose a SWOT analysis and a fraud matrix were drawn. They will help to identify the weaknesses and potential frauds and therefore be a guide for the recommendations. 2.2 In the methodology of this report are also included meetings with managers and relevant staff, managers’ review of the work in progress and questionnaire. Internet research and consulting with people in the industry and experienced managers will help provide a more reliable report. 2.3 Training providers and accounting systems companies are also consulted in order to produce the cost benefit and recommend an appropriate new accounting system and training for the staff.

3. Executive Summary

4. Introduction
4.1 Sandwich Master is a marginally profitable business with 80% of sales being made on cash terms. It produces and sells ready made sandwiches and savouries from over 80 shops across the country. 4.2 A large amount of the business is financed by borrowings so interest payment is a big concern. Getting new loans is also not very likely to happen as recession is deepening and banks and companies are tighter and more cautious when it comes to lending money. 4.3 Downsizing, redundancies and shop closures are foreseen in the near future but directors are very reluctant about it.

5. Review of Current Accounting Systems

6. Weakness

7. Recommendations for Improvements

8. Cost Benefit Analysis

9. Appendices
9.1. Project Proposal
Project Proposal Form
Name: Lucia Guizzo Assessor: Julia House
AAT Number: 10376747

1. What option have you chosen (case study or work-based report)? I have chosen to work on the case study.

2. What area within the accounting function are you going to focus on (on the case study this must be specific rather than looking at the whole system)? Sales Ledger/ Credit Control

3. What weaknesses, if any, have you found so far to include in your report? (a few bullet points only – on the case study this needs to be the weaknesses specific to the area of the accounting system you have identified above) • No compliance with credit control policy.

• In practice collection normally takes place more...
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