Accounting Matric Project, Internal Audit
IEB matric accounting project 1 , internal control of a bakery
Cassandra Porritt
Grade 12G
Accounting :Internal control report
1. There was always a camera survalence system as a control measure but Spar took this internal control and made it more effective by employing hearing impaired people rather than people with normal hearing abilities to monitor the tape for any fraudulant activities. The reason this made the system much more effective was because hearing impaired people are able to pick up on body language and spot suspicious behaviour much better and faster than a regular person. This means that the employees could watch footage much faster and therefore there is a better productivity. Also this means that there are more results because the deaf employees were able to spot things that would not be as odvious to a person with normal hearing abilities, this means that more fraudulant behaviour was revieled. Another reason why this system has become so effective is because the deaf employees would be focused and not get distracted by other employees by chatting to them for example. This improvement of the current system creates no extra costs and will only save the money of the business because this control system will decrease fraudulant behaviour that normally costs the business a lot of stock and cash. Also by creating jobs for the hearing impaired (who often can not find work because of their disability) the business will get a lot of possive publicity.
2. This control system would be viable. Although the initial costs are expensive and will include paying for and installing the security cameras and employing hearing impaired staff to monitor the footage, in the long run this system will save the business money by its benefits, which out way the costs. Because of the smaller scale of the shop (compaired to Spar) Melanie
Cassandra Porritt
Grade 12G
Accounting :Internal control report
1. There was always a camera survalence system as a control measure but Spar took this internal control and made it more effective by employing hearing impaired people rather than people with normal hearing abilities to monitor the tape for any fraudulant activities. The reason this made the system much more effective was because hearing impaired people are able to pick up on body language and spot suspicious behaviour much better and faster than a regular person. This means that the employees could watch footage much faster and therefore there is a better productivity. Also this means that there are more results because the deaf employees were able to spot things that would not be as odvious to a person with normal hearing abilities, this means that more fraudulant behaviour was revieled. Another reason why this system has become so effective is because the deaf employees would be focused and not get distracted by other employees by chatting to them for example. This improvement of the current system creates no extra costs and will only save the money of the business because this control system will decrease fraudulant behaviour that normally costs the business a lot of stock and cash. Also by creating jobs for the hearing impaired (who often can not find work because of their disability) the business will get a lot of possive publicity.
2. This control system would be viable. Although the initial costs are expensive and will include paying for and installing the security cameras and employing hearing impaired staff to monitor the footage, in the long run this system will save the business money by its benefits, which out way the costs. Because of the smaller scale of the shop (compaired to Spar) Melanie
References: External audit, (2013) Business Dictionary.com, http://www.businessdictionary.com/definition/external-audit.html#ixzz2PDjVtmCb. 2013, April 07 internal controls, (17 March 2011) YouTube http://www.youtube.com/watch?v=siYm9J0pITU. 2013, April 01 CIMA P3 Lecture 4 - Internal Controls 1.avi ( 10 Febuary 2010) You Tube http://www.youtube.com/watch?v=A4AxZGzduXQ . 2013, April 01 Internal controls and audit controls, (14 febuary 2013) You Tube http://www.youtube.com/watch?v=DbnD9WRGpHg 2013, April 07