It is a review of management and how operating procedures work. How effective and efficient the procedures are for the company. Although operational audits reveal possible problems in the financials statements, a compliance audit and fraud audit will help Whitfields internal
Documentation is also important too because you need to keep records of any financial reports for the company for internal and external auditing that is done, it should kept on file as well on file in with the computer too for safety reasons. Independent internal verification would be put into place because you have to make sure that the data is correct for your business, and if anything is wrong it should be reported and corrected right away. Lastly I would want to bond my employees because I would want to make sure that my employees can be trusted to handle money and if any were to happen I everything would be covered for everyone involved. The way that my managers would use the financial information would be to determine how much salaries would be for employees as well as how much money would go into purchasing goods for the company too. All these things would determine how much revenue would come into the business and how much we lose as well.
The business owner or (if it’s a large business) a bookkeeper is in charge of recording all of the money going out (from sales) and all the money going out, such as expenses. If a business fails to achieve this they could find themselves not chasing payments, forgetting to pay bills or even worse, getting in trouble with HM Revenue and Customs (HMRC). When a business fails to record their transactions correctly it is impossible for them to publish their financial performance accurately and therefore tax payments may be wrong. Monitoring Activity There will be somebody within the business that will update the records on a regular basis and therefore will show a good indication on how the business is doing. The reason C&V would keep their records up to date is to ensure that they have received all of their payments from customers but also to ensure that they pay their suppliers.
This can cause money to be lost or accounted for which can cause loss of business. Cash registers should be used in all locations and they can also use the software program Microsoft Excel to keep track of employee hours as well as payroll. Employees should be given an identification code to access the cash registers and computers so that if any mistakes are made it will be easy to track which employee made that mistake. With any company it is so important to make sure all monies are accounted for and where it was spent. If Kudler’s were to handle payroll in-house it would save them money from having an outsource company take care of payroll for them.
The purpose of the financial statement audit is to ensure the entity being audited is preparing the financial statements in conformance with General Accepted Accounting Principles (GAAP). The information is important to investors, managers, banks,
As for the other departments in the company that use computers can create the interface that best suits their needs and their business type. The POS will allow the clerks to continue business as usual with the exception of customer basic information can now be accessed from the POS screen and an area for specific notes for each customer. Inventory, Suppliers, Customers, Employees, Departments, are managed and maintained through a series of powerful databases. All of the information entered into the system are integrated and managed by each database. For security reasons Managers can control who has access to the system and each user is assigned a unique security profile that determines exactly what features and functions can be accessed.
Loss prevention and security is a matter that is very important to the store as for every time tesco loses money due to theft they try to retain their profit by increasing their prices and so to avoid situations such as this occuring the store puts in reinforcements such as security tags, security gates, security cameras etc. Having a security guard(s) at Tesco is a visible deterent to individuals who have the intention of stealing , they also provide proffesional protection of the stores items. Having a security guard in tow means they may control and observe the activites of individuals in store by patroling the store . Security cameras may be used to monitor any suspicious activity it may also prevent/ deter individuals from commiting crimes as they would be recorded, this is a permanent recording is used as proof once a crime is commited and will most likely unsure an arrest/conviction is made. A security company that works in retail is G4S they work to reduce the loss in stock some retail businesses may experience and provide a safer environment for not only customers but also workers.
Under Section 404 of the act, these findings must detail any uncovered control deficiencies or instances of employee fraud, and must also be reviewed and attested by the registered accounting firm. The authors of the report must certify that the report does not contain any false information, misleading statements or significant omissions, and that the financial statements and information included in the report accurately represent the financial condition of the company. Under Section 401 of the act, this representation must account for both balance and off-balance sheet debts, obligations and transactions in order to facilitate maximum transparency for shareholders (Nikolas, Daniel. Nd Effects of the Sarbanes-Oxley Act). The act serves as a guideline and governs what an accountant should and should not do when reporting financial flows.
My chart of accounts would include Cash, Accounts Receivable, Accounts Payable, Equipment, Supplies and Salaries and Wage expense. If I operated a merchandising firm, the chart of accounts would also include Inventory, Sales Revenue, Sales Returns and Allowances, Sales Discounts and Cost of Goods Sold. A CPA would have to perform more functions in the reconciliation of financial records. In my company I would utilize the Accounting Information System to ensure the accuracy of accounts and to make sure all transactions are collected and processed so that I can review the Income Statement in a timely fashion. I would also utilize the segregation of duties to ensure no one person can defraud the company by being allowed to record and control assets.
Using the transaction processing system makes product transactions easier to monitor and track which makes it easier to place orders and monitor how inventory sales are going. They system is able to keep accurate accountability for each product as it is sold, create invoices for orders, and reordering product. Having this system in place is critical because without it there can be data errors from numerous areas. There could be accounting issues such as invoices being paid multiple times, invoices not paid at all, transactions not accounted for, or financial statements not calculated correctly due to missed information. The importance of monitoring all the transactions coming and going from each location plays a key role in maintaining not only accuracy in inventory but also accuracy with the general ledger.