BUSINESS REPORT

Business Report

Business Report

TASK 1

Record Keeping System in Cookbridge

To review accounting system for cookridge carpets the three key divisions within the accounting system, of analysis, design, and implementation must be complemented with a system of control.  This internal control is a system within a system, but plays a key role in the success of the accounting system.  The internal controls will protect business from abuse and fraud; they ensure that the information we're receiving is accurate and timely, and that all regulatory requirements are being met.  So how are internal controls set, and how does the control system function? Let's take a nearer look.

There are five key components of interior command environmental command, risk assessment, command methods, supervising and data and communication.  Each locality contributes an absolutely vital part of the command system as a entire, and without all of the key elements present, the commands and command scheme doesn't work.

Principles of internal control using Cookbridge

The basic principles of financial internal control system are as follows: the financial and accounting operations must be separated by the cash handling and recording of them must be done by different individuals. Responsibility for work must be clearly defined so that there can be no doubt or confusion.

Too much confidence doesn't have to be assigned to one person. Almost all frauds were committed by the agents or employees. It is interesting to note that fraud has occurred because of their faith. Ratio of principle relating to the transfer of staff from one workplace to another must be inflexible guidelines. It is an effective safeguard against collusion and recognized as important Canon sound organization.

Mechanization of work where possible and practical use of mechanical devices such as cash register, record hours calculation machine must be entered. User account control System should be set in an elegantly accounting system.

This work should be designed so that the employee should be properly verified by independent workers. Such continuous and permanent monitoring and control products moral errors and fraud cannot remain unnoticed.

Environmental Control in Cookbridge

The environmental control submits to management and employee manner and performance. The goals and objectives of Cookbridge`s management will affect employee behavior and attitude throughout a business and if the goal and objective of the management is to achieve certain sales levels at all costs, this discourages employees to adhere to the internal controls in place and encourages achievement of what management wants, never mind the consequence (Brealey, 2003). The human resources department of a business will provide much of the input for effective environmental control.

Risk Assessment in Cookbridge

In Cookbridge`s case risk assessment is a managerial function, but can be encompassed in a day to day investigation by employees, if the work natural environment includes dangers and dangers.

The first two internal controls elements do not appear to have very much to do with an accounting scheme, but if you will halt and actually think, each of these areas can have a marvellous sway upon the profitability and thriving procedure of a business.Therefore, they are an essential part of the accounting ...