ICAS Paper
Table of Contents
1. Terms of reference 2
2. Executive Summary 3
3. Methodology 4
4. Introduction 5
5. Analysis and Evaluation of the Current System 6
A. The record keeping system 6
B. The use of financial statements 6
C. Internal systems of control 7
D. Fraud 8
E. Practice 9
F. Training 9
G. Professional ethics 9
H. Sustainability 10
6. Weaknesses of the Accounting System 11
7. Recommendation 13
8. Cost Benefit Analysis 15
9. Appendices 16
1. Terms of reference
1.1 This report has been prepared to cover the assessment criteria requirements of AAT learning and assessment area ‘internal control and accounting system.
1.2 The aims of this report are to:
Review the accounting system of Chic Paints Ltd particularly the effectiveness of its internal control through SWOT analysis and making recommendation.
Evaluate the accounting system against ethical principles and identify any actual or possible breach of the five fundamental principle of the code of professional ethics.
Evaluate the accounting system against sustainability principles and identify any possible improvements that could be made to improve sustainability.
2. Executive Summary
2.1 The report is about the accounting system of Chic Paints Ltd. An analysis was made to find its strength and weakness along with recommendation that will improve the system. The analysis took place in the organisation.
2.2 There was some weaknesses found while analyzing the system the main weaknesses are:
During lunch break the warehouse should be locked. Somehow two warehouse staff spends their lunch break playing computer game on the store computer.
The only other member of staff trained to operate the accounts receivable ledger is Hazel Richmond, the chief accountant. During May and June when she is chasing up debtors for payments she tends to fall behind in finishing her accounts receivable work which lead to transaction not being collected, recorded and communicated properly.
With the qualification or experience the
1. Terms of reference 2
2. Executive Summary 3
3. Methodology 4
4. Introduction 5
5. Analysis and Evaluation of the Current System 6
A. The record keeping system 6
B. The use of financial statements 6
C. Internal systems of control 7
D. Fraud 8
E. Practice 9
F. Training 9
G. Professional ethics 9
H. Sustainability 10
6. Weaknesses of the Accounting System 11
7. Recommendation 13
8. Cost Benefit Analysis 15
9. Appendices 16
1. Terms of reference
1.1 This report has been prepared to cover the assessment criteria requirements of AAT learning and assessment area ‘internal control and accounting system.
1.2 The aims of this report are to:
Review the accounting system of Chic Paints Ltd particularly the effectiveness of its internal control through SWOT analysis and making recommendation.
Evaluate the accounting system against ethical principles and identify any actual or possible breach of the five fundamental principle of the code of professional ethics.
Evaluate the accounting system against sustainability principles and identify any possible improvements that could be made to improve sustainability.
2. Executive Summary
2.1 The report is about the accounting system of Chic Paints Ltd. An analysis was made to find its strength and weakness along with recommendation that will improve the system. The analysis took place in the organisation.
2.2 There was some weaknesses found while analyzing the system the main weaknesses are:
During lunch break the warehouse should be locked. Somehow two warehouse staff spends their lunch break playing computer game on the store computer.
The only other member of staff trained to operate the accounts receivable ledger is Hazel Richmond, the chief accountant. During May and June when she is chasing up debtors for payments she tends to fall behind in finishing her accounts receivable work which lead to transaction not being collected, recorded and communicated properly.
With the qualification or experience the