Assignment - Internal Controls
Task
You have been recently employed as an accountant for Bucks Phyz. The CEO has tasked you with reviewing the sales processes of the company and has provided you with key information based on interviews with key staff relating to the sales process (available in Interact).
The CEO is also considering the introduction of corporate credit cards for the purchase of smaller items for the business. At present, all purchases require a purchase order to be raised and sent to a supplier. This process was an issue when they recently tried to book a training course for two team members and the bookings needed to be completed on line. The staff needed to book the course themselves and seek reimbursement from Bucks Phyz. The CEO would also like advice regarding the impact of the introduction of corporate credit cards and who should be issued with a card. Using the information provided to you, you need to prepare a business report to the CEO including the following:
A summarised overview of the Sales Process for Bucks Phyz. [This should be no longer than one (1) paragraph and need to focus on the key relevant facts. The CEO is already aware of this information, but this overview helps bring your report together for other readers]
Identification of; internal control weaknesses in Bucks Phyz sale process;
the impact these weaknesses could have on the organisation;
specific internal controls which could be implemented by Bucks Phyz in the coming weeks to mitigate the risks posed by the internal control weaknesses you have identified.
The CEO does not want theoretical controls suggested. They want practical controls that they can implement.
A review of the impact of the introduction of corporate credit cards. This needs to include:
- a detailed review of the benefits and potential risks associated with the introduction of corporate credit cards within Bucks Phyz.
- the specific Internal Controls which should be implemented by Bucks Phyz to minimize the impact and occurrence of the risks you have identified?
- a recommendation to the CEO regarding who should be issued with a corporate credit card and why?
Rationale
This assessment task has been designed to assess your ability to:
- be able to evaluate accounting information system architecture; and
- be able to identify organisational risk and generate systems that control that risk.
Presentation
Your assignment needs to be presented as a business report to the CEO of Bucks Phyz. A business report includes;
- a cover page addressed to your desired audience;
- an Executive summary (refer to the note below regarding an executive summary);
- a Table of contents (linked to the headings in the report);
- headings and sub headings clearly identify what is being discussed;
- a conclusion, including recommendations as required; and
- referencing (using APA style).