Internal Control
Task Investigation
Essay on Internal Control
Submit your completed Task to your teacher at the first lesson of Term 3
The Scenario
Kay Slater, an experienced surfie and owner of Surfies and Boardies, has employed nine staff in her business to make and sell surf boards, and surfing equipment and assist with administration. She has employed her staff as follows: * Five of the employees work in the factory where valuable equipment is stored and used. Of these, one is responsible for the inventory and the production performance report; another orders, receives and stores materials in a shed out the back. The other three, work together manufacturing and selling the boards. * The manufactured boards are stored out the back with the materials and new machinery until they are required in the shop. Whichever of the ten employees is available at the time the boards are required, brings them in from the shed. * One of the employees looks after the shop; is the cashier who receipts all cash and banks daily at 3pm. The cash and cheques are kept in a tray under the front desk and when required small amounts for donations and morning tea supplies are taken from the tray. Whilst the banking is done a manufacturing employee spends his afternoon tea time attending to the shop. Employees regularly eat in the shop. * Kay employs a bookkeeper who takes care of the financial recording processes and prepares the Income Statement and Balance Sheet. She also prepares the monthly statements for the Accounts Receivable and writes the cheques for the Accounts Payable when Kay is on the surfing circuit. If the bookkeeper is not available her friend signs the cheques. * The bookkeeper’s friend who is studying accounting is employed as general help after university hours. She reads the Income Statement and advises the owner on the profitability and financial stability of the business. * The ninth person, a backpacker and friend of one of the manufacturers, has
Essay on Internal Control
Submit your completed Task to your teacher at the first lesson of Term 3
The Scenario
Kay Slater, an experienced surfie and owner of Surfies and Boardies, has employed nine staff in her business to make and sell surf boards, and surfing equipment and assist with administration. She has employed her staff as follows: * Five of the employees work in the factory where valuable equipment is stored and used. Of these, one is responsible for the inventory and the production performance report; another orders, receives and stores materials in a shed out the back. The other three, work together manufacturing and selling the boards. * The manufactured boards are stored out the back with the materials and new machinery until they are required in the shop. Whichever of the ten employees is available at the time the boards are required, brings them in from the shed. * One of the employees looks after the shop; is the cashier who receipts all cash and banks daily at 3pm. The cash and cheques are kept in a tray under the front desk and when required small amounts for donations and morning tea supplies are taken from the tray. Whilst the banking is done a manufacturing employee spends his afternoon tea time attending to the shop. Employees regularly eat in the shop. * Kay employs a bookkeeper who takes care of the financial recording processes and prepares the Income Statement and Balance Sheet. She also prepares the monthly statements for the Accounts Receivable and writes the cheques for the Accounts Payable when Kay is on the surfing circuit. If the bookkeeper is not available her friend signs the cheques. * The bookkeeper’s friend who is studying accounting is employed as general help after university hours. She reads the Income Statement and advises the owner on the profitability and financial stability of the business. * The ninth person, a backpacker and friend of one of the manufacturers, has