Internal Control in Accounting System - 1516 Words

1 TERMS OF REFERENCE | terms of reference: | |This report has been prepared to cover the assessment requirements of AAT Learning and Assessment Area ‘Internal Control and Accounting Systems.’ | |The objectives of this report are to: | |a)analyse accounting system and effectiveness of its internal control | |b) to identify the strengths and weaknesses of accounting system and to recommend necessary improvements or†¦show more content†¦All staff except accounts department are paid weekly in cash. Pay packets are available from the showroom manager. Sales staff are paid hourly rate +commission which is variable. Sonja calculates amount of hours from completed rota. Any overtime is calculated manually. Then Sonja use cheque book to drawn cash from the bank to pay salary. After pay packets are ready Sonia stores it in the office safe. And any member of the sales staff who is not busy can collect and distribute this. If Sonja away other people from accounts department do have aces to cash in safe 6.2 Payment Only owner of the business can sign the cheque. Company pays it is suppliers at the end of the month that their invoice is received. But most of suppliers are requesting payment within thirty days of invoice date. All suppliers are paid by cheque. 6.3 Customers Payment Some customers pay cash but mostly they take credit. Customer credit story is checked through the agency. Customers are offered monthly payment at 6 month free credit and 28.4% after. Finance company charge 8.7% to the company. If customer didn’t pay in right time ( 2 month due) so company pass information to debt collection agency which charge  £80 per case +30% of any money collected. 6.4 Cash and banking Banking is carried out on Monday and Thursday. Stefan is checking mail daily basis. He manually enters any cash or cheque received fromShow MoreRelatedAccounting Systems, Internal Controls, and Ethics28179 Words   |  113 Pages Accounting Information Systems ACCOUNTING SYSTEMS, INTERNAL CONTROLS, AND ETHICS Prepared for the course team by Vimlesh B. 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