Internal Control Weaknesses
Discuss about the Explanation of Internal Control Weaknesses.
The business organizations are considered to be showing the explanation of the internal control weaknesses as it is being explained in this case. The vitality of the roles are being explained by showing the enhancement of the work which is illustrating the recognition of the weakness as it is being explained by showing the explanation of the defects which is being explained in this case. The explanations are surrounding the study which is being made by showing the explanation of the work and also the expressions are made in the form of mitigating the weak points as it is being used for showing the explanation of the work. This is simply explaining the works of the internal audit as it is being made in the form of the explanations provided to this context (Appannaiah, Reddy and Putty, 2010). The systems are considered to be showing the appropriate safeguarding characteristics as it is being explained in this case. This is simply explaining the structure of the study and also it is revolving round the respective policies that must be implemented for the betterment of the management and the teams involved in the work structure. The presentation of the weaknesses are considered to be showing the views which are illustrated in the form of explaining the appropriate structure for the management of the works as undertaken for the study.
The type of the displays made for showing the describing the type of the supplies can be easily explained by showing the displaying the huge garden tools as it is being explained in this study and also the description is being made by illustrating the enhancement of the work by showing the explanation of the points as provided below (Bragg, 2013). It is simply explaining the problems as identified in the management which is being described by illustrating the remedies of each weakness and are represented in the following points:-
- Weakness in management of credit: The problem is being appropriately identified in the case of the credit management is explaining the details by which the management of the work can be easily explained. The Everyday Supplies Pty Ltd is illustrating the transferring permissions which are being made by showing the enhancement of the issues as it is being explained in this case. This is simply explaining the structure of the organisational ethics and also the work is depicted to be illustrating the issues as it is being explained in this case. The unethical conduct made by the manager regarding the management of the cash is illustrated (Britton and Waterston, 2013). Henceforth the checking of these undertakings are becoming the crucial point for showing the management of the supplying processes with facing the over debt positions. This work is illustrating the remedies which can be easily used in this case for the mitigation of the issues as it is being presented. The issue must be solved in that each case by the making of some changing in order of supply system.
- Weakness in supervision of receivable account: The proper focus on the issues is being made by illustrating the record keeping ways which is notified in the case of the Everyday supplies limited. As the case is surrounding the point of the reconciling, the structure can be easily represented in the form of showing the presentation of the work as it is being mentioned in this case (Horngren, 2013). Appropriate responsibility must be carried out by the management for the betterment and the mitigation of the issue as it is being identified in this case.
- Weakness of cash handling: The management is showing the appropriate enhancement of the work by presenting the inappropriate tries which is being made for detecting the internal control measurements. The process of the risks is appropriately recognized by showing the mitigation of the structures that are being used in the form of showing the expansion of the work. The inappropriate enhancement of the work is being made by showing the effective remedies and also illustrated by showing the inbuilt risks present in the organisation (Horngren, 2014). The management of the work are showing the appropriate management of the work which must be made by showing the appropriate recognition of the cash handling processes.
- The weakness of the Bookkeeping: The preparation and presentation of the financial statement is very much important which is the responsibility of the accountants. The issues are shows the underlying operations that it is records made by wrong judgement (Weil, 2017). The establishment of the accurate data and information is in order to modify the accounts in order to be more important of the study. The process is not only the appropriate measurement of the values but also determining the errors and omissions in the financial statements. The implementation of the tracking information system will help to determine and evaluate the issues in the financial statements (Powers and Needles, 2012). Showing the measurement of the accurate type of transaction that are undertaken for the individual issues transactions, and concurrently of inappropriate management should be in order to remove by implementation as a step of remedy and also the inappropriate management must be removed by implementing this step as a remedy. It also performed by enabling the appropriate management can be easily made up. The risk management strategies should be implemented in order to determine and evaluate the risk level. Every Supplied Pty limited will able to prepare the financial statements in an appropriate manner. The issues of the transaction can be determined and evaluated for the betterment of the organization (Horngren, 2014). The estimation of the values and preparation should be done in an appropriate manner. Thus for the organization of that individual company of the which is appropriately build up for the construction of the study that it is undertaken in this each cases of that individual company.
- Write-offs: Each of the customers may not be able to used the post in order of accountant that is uncollectable revival. Each company in order to receive the accountant of the record of the early state that violates the matching principles. When the accountants write off the account that is uncollectible, the accountant receive the matching principles that violates the loss statement. The expenditures can occur in the period of record of initial sale violating the matching principle (Schroeder, Clark and Cathey, 2011). Account receivable is referred to the current asset that shows the due amounts from the customers. Therefore, if the amounts become uncollectible then the account receivable balance become high. The receivable amount in the writing method is taken into account at the time of the sale. The changes affect the value of the balance sheet. The profit boundary can be a reason for the enhancement or reduce of the bad expense presentation (Libby, Libby and Short, 2014). The accountants prepare the accounts and shows the amount that is due from the customers. In the same period, the expenses can occur that the accountants have to write off on the financial position statement. It may lead that most of the time during the later phase the poor debit charges are represented in an improper way showing the profit of the income statement. The values of the item in the financial statements are generally influenced in a room which is provided by the writing off process (Chorafas, 2000).
- Survival: In this financial record, the impartiality assets property and the legal responsibility are shown through the balance chart. Human rights and duty: the human rights and the duties are governed by the properties and they are responsible to pay the charges to the corporation. Next Completeness, property, liabilities and equity balances and the report of assets are submitted by the company in a proper way and the balance chart should reveal properly the submitted report. In assessment and distribution, the estimation of the property, equity and the liability should be done and the balance chart should contain the appropriate valuation of the above mentioned items. In the test of control for cash receipts: Occurrence, two cashiers should be employed by the company for rolling and withdrawing the cheque. Those two cashiers will take care of the emails, balance and the suggestions related to the payment (Kew and Watson, 2012). The ledger accountants should get the journals related to the business and which are prepared and posted by the accountants of the company. The entire money which is placed in the bank should have a proper record to be submitted to the accountants. In the time of depositions all the amount of money should be tracked and recorded by the management and accountants of the company. for better communication and the production of the cash flow the company should prepare more perfect balance report the amount of money. Based on the financial statement the business dealings should be continued.
The business institute Everyday Supplies system Pty Ltd had to face many challenges due to the presence of various negative points in their internal control system. The problems faced by the company can be a major threat to the business. The performance of the business organization and the management helps to detect the negative points in their internal control system. The weakness of the inner control system can be a reason for the reduction of the auditing performance. Different kind of auditing problems are arrives due to the deficiency of the internal control and it also can be the explanation for the auditing trouble. The growth of the firm also can be affected by this problem .
Appannaiah, H., Reddy, P. and Putty, R. (2010). Financial accounting. Mumbai [India]: Himalaya Pub. House.
Bragg, S. (2013). Accounting best practices, seventh edition. Hoboken, N.J.: John Wiley & Sons.
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Horngren, C. (2013). Financial accounting. Frenchs Forest, N.S.W.: Pearson Australia Group.
Horngren, C. (2014). Accounting. Toronto: Pearson Canada.
Kew, J. and Watson, A. (2012). Financial accounting. Cape Town: Oxford University Press.
Libby, R., Libby, P. and Short, D. (2014). Financial accounting. Maidenhead: McGraw-Hill Education.
Powers, M. and Needles, B. (2012). Financial accounting. [Mason]: South-Western, Cengage Learning.
Schroeder, R., Clark, M. and Cathey, J. (2011). Financial accounting theory and analysis. Hoboken, NJ: Wiley.
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Waterston, C. (2006). Financial Accounting. Pearson Education UK.
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