Cookridge Report
1.0 Terms of Reference
This report has been prepared as part of the requirement of AAT 4 (The Technician Stage of the Association of Language Technicians) namely Internal Control and Accounting Systems.
The report is an analysis of the issues facing Cook ridge Carpets Ltd and in particular the accounts department. Included in the report are factors that affect the efficiency of the accounts department: Management, operational deficiencies, structure, training needs and requirement for developments in systems.
2.0 Executive Summary
This report identifies the key issues/problems that result in the inefficiencies within the accounts department; lack of training, duplication of tasks, single-user computer systems, poor communication and poor credit control management.
Staff time is not being utilised as it should and lack of planning, targets and inefficient preparation (if any) of end of year accounts mean that the accounts department is not fulfilling its core duties.
The weaknesses in the accounts department and in systems as a whole mean that there are many opportunities for fraud. Professional development is not taking place and this is having a negative effect of staff performance and morale.
The credit control system within the accounts department is particularly weak and policies need to be tightened up so that there is minimal risk of cash flow problems due to bad debtors or over-stretched payment periods.
The computer systems are ineffective to deal with the different functions as a whole and it requires and Integrated computer system to bring information together, versatility in roles and improved planning and performance.
3.0 Methodology
The following resources were utilised for the report: Internal Control and Accounting Systems (Kaplan), lecture notes, www.sage.co.uk,www.aat.co.uk and moodle.cavc.ac.uk
A Fraud Matrix (based upon the Ernst & Young Model) has been drawn up to identify current opportunities for fraud.
A versatility
This report has been prepared as part of the requirement of AAT 4 (The Technician Stage of the Association of Language Technicians) namely Internal Control and Accounting Systems.
The report is an analysis of the issues facing Cook ridge Carpets Ltd and in particular the accounts department. Included in the report are factors that affect the efficiency of the accounts department: Management, operational deficiencies, structure, training needs and requirement for developments in systems.
2.0 Executive Summary
This report identifies the key issues/problems that result in the inefficiencies within the accounts department; lack of training, duplication of tasks, single-user computer systems, poor communication and poor credit control management.
Staff time is not being utilised as it should and lack of planning, targets and inefficient preparation (if any) of end of year accounts mean that the accounts department is not fulfilling its core duties.
The weaknesses in the accounts department and in systems as a whole mean that there are many opportunities for fraud. Professional development is not taking place and this is having a negative effect of staff performance and morale.
The credit control system within the accounts department is particularly weak and policies need to be tightened up so that there is minimal risk of cash flow problems due to bad debtors or over-stretched payment periods.
The computer systems are ineffective to deal with the different functions as a whole and it requires and Integrated computer system to bring information together, versatility in roles and improved planning and performance.
3.0 Methodology
The following resources were utilised for the report: Internal Control and Accounting Systems (Kaplan), lecture notes, www.sage.co.uk,www.aat.co.uk and moodle.cavc.ac.uk
A Fraud Matrix (based upon the Ernst & Young Model) has been drawn up to identify current opportunities for fraud.
A versatility