Internal Controls

Topics: Accounts payable, Accounts receivable, Cash Pages: 18 (5652 words) Published: June 18, 2011
Mission Statement:
Vineyard Vines is dedicated to bringing new and creative ideas to the market place, both in our product offerings as well as our marketing events. We will continue to develop our unique brand positioning, to maintain and grow our solid brand recognition, and to adhere to high quality design standards. Because everyone wants to have fun every day, Vineyard Vines will continue to offer something for everyone with fun always in mind. History:

Founded in 2010, Vineyard Vines was built by Ian Murray who had a suit-and-tie Manhattan career, but really wanted to live and play by the water. After leaving the corporate environment, Ian started making quirky neckties; the rest, as they say, is history. Self financed, it is an authentic story of entrepreneurship. The company’s ties carry an inherent authenticity that resonates with Vineyard Vines’ customers: A simple, quality product that people like to wear, while providing the best customer service possible. Overview:

Vineyard Vines is an emerging small business in a competitive retail industry that needs to be managed efficiently and effectively. Vineyard Vines has adopted a system of internal controls to stay on the cutting edge in the industry, and provide accountability, enabling seamless operation and management. Our process of controls is implemented to ensure integrity within our business, corporate governance, risk management and fiscal responsibility, while preventing fraud. and ill repute. The strong adherence to our internal controls and activities is what makes Vineyard Vines true to its mission.

Organizational Chart:

Computer Infrastructure Operation System
Vineyard Vines is using both a Local Area Network (LAN), and a wireless LAN network infrastructure. operating system Because of the small size of their retail store, there are ten computers connected to the network. Six computers are located on the second floor of the store, and belong to the owner, IT Manager, Accountant, Designer, Purchase Designer Assistant, and the Manufacture Controller. The other four computers are on the first floor sales area, to be used by the Sales Manager and Sales Staff. Vineyard Vines employees can share the peripherals added to the network, instead of having an individual printer, scanner or modems attached to each computer. The store chose to employ a LAN, due to the cost efficiency. Comparing the LAN to other network options, it was the most cost-effective choice. For security, passwords have been implemented for specific directories, to restrict access to authorized users. The LAN allows sharing and transferring files among employees. It was preferred by Vineyard Vines as it was easy to centralized and download on one server that was located on the second floor which means that the information can be located from any computer in the store. The network provides an e-mail system, allowing communications with customers for all retail promotions. E-mails on a LAN enable employees to communicate with each other. With the LAN connected to the Internet, the sales department can communicate with customers by sending them coupons via e-mail. The following diagram illustrates the system used in Vineyard Vines on the second floor:

The Ethernet local area network (LAN) physical layer technology is being used in Vineyard Vines first floor by the sales department. Vineyard Vines selected the Ethernet for their sales department because it’s the most commonly and widely installed system technology due to the higher data transmitting speed, the reasonable cost, and it’s easy to install. The diagram below illustrates the system used in Vineyard Vines on the first floor (retail store).

Point-of-Sale (POS) Software
Vineyard Vines chose “Point-of- Sale” (POS) software for business, since it is one of the best retail management software packages. The POS system covers inventory control, full accounting, sales transactions, and inventory tracking. We use POS...
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