Internal Controls and Systems Documentation Value: 20% Due Date: 15-Sep-2018 Return Date: 05-Oct-2018 Length: maximum of 1,500 words Submission method options: Alternative submission method Task back...

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Internal Controls and Systems Documentation


Value:20%Due Date:15-Sep-2018Return Date:05-Oct-2018Length:maximum of 1,500 wordsSubmission method options:Alternative submission method

Task



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You have been recently employed as an accountant for the Platinum Manufacturing Group. The CEO, Ms James, has tasked you with reviewing their system for the purchase, receipt, storage and issuance of raw materials as part of their expenditure process. To facilitate this, she has provided you with key information relating to Platinum’s raw materials purchasing processes (available in Interact).






Using the information provided to you, prepare a business report to the CEO including the following:



  1. A summarised overview of the expenditure process relating to the purchase, receipt, storage and issuance of raw materials. (1 mark)[Thisshouldbenolongerthanone(1) paragraphandneedtofocusonthekeyrelevantfacts.TheCEOisalreadyawareofthis information,butthisoverviewhelpsbringyourreporttogetherforotherreaders]

  2. Use a system tool to develop a level 0 data flow diagram to document the raw materials purchasing process. (7 marks)

  3. Identificationof:

    • internal control weaknesses relating to Platinum’s inventory management and expenditure process; (2 marks)

    • the impact these weaknesses could have on the organisation; (2 marks)

    • specific internal controls which could be implemented by Platinum in the coming weeks to mitigate the weakness 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; and (4 marks)

    • how the control procedures you recommended in part c. above could be implemented using the latest developments in IT such as automation and electronic forms (2 marks)




All parts of question 3 must be answered a table in your report. Answer this question using the following headings:






















Internal Control Weakness



Impact of the weakness



Control to mitigate the weakness



Latest IT developments



























2 marks will be awarded for the presentation of your report. This includes use of appropriate grammar and spelling, application of APA referencing and a report prepared in line with the presentation requirements below.


Rationale



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This assessment task will assess the following learning outcome/s:



  • be able to evaluate accounting information system architecture and generate models of business events.

  • be able to identify organisational risk and generate systems that control that risk.


Marking criteria and standards



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Marking CriteriaHDDICRPS
Analyse and evaluate business processesAbility to write a clear and concise overview of the given process and issue; essential details captured; language suitable for the desired audience.Ability to write a clear and concise overview of the given process and issue; almost all essential details captured; language suitable for the desired audience.Ability to write a concise overview of the given process and issue; almost all essential details captured; language is mostly suitable for the desired audience; minor errors.Ability to write an accurate overview of the given process and issue; key details captured; language is mostly suitable for the desired audience; minor errors.
Be able to analyse organisational processes and identify relevant risks.Outstanding evaluation of the key relevant risks and a comprehensive explanation of how they impact the organisation.An analysis of the key relevant risks and a clear explanation of how they impact the organisation.An analysis of the key relevant risks and a basic explanation of how they impact the organisation.A satisfactory analysis of relevant risks, explaining how they impact the organisation.
Ability to recommend and discuss relevant internal controls to mitigate the identified risksProvision of relevant recommendations for each identified risk, providing an outstanding level of detail regarding how they each mitigate the risks identified; choosing the most relevant controls for the current situation and the risks you have identified.Provision of relevant recommendations for each identified risk, providing a high level of detail regarding how they each mitigate the risks identified; choosing key controls relevant to the current situation and the risks you have identified.Provision of relevant recommendations for each identified risk, providing above satisfactory detail regarding how they each mitigate the risks identified; choosing controls relevant to the current situation and the risks you have identified.Provision of recommendations for each identified risk, providing satisfactory detail regarding how they each mitigate the risks identified; choosing appropriate controls for the current situation and the risks you have identified.
Academic writing skillsOutstanding use of syntax, vocabulary, spelling and punctuation; succinct and effective use of vocabulary; correctly formatted using APA style referencing. Outstanding presentation of findings in the correct report format.A high level use of syntax, vocabulary, spelling and punctuation; correctly formatted using APA style referencing. A high level presentation of findings in the correct report format.


An above satisfactory use of syntax, vocabulary, spelling and punctuation; reference list formatted in APA style, with few or no errors. An above satisfactory presentation of findings in report format with minimal errors.Satisfactory use of syntax, vocabulary, spelling and punctuation; reference list used, formatted in APA style, with minor errors. Satisfactory presentation of findings, report format attempted, some errors or omissions present.


Presentation



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Your assignment needs to be presented as a business report to the CEO. 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).



Note: an Executive Summary is not an introduction. An Executive Summary should be an overview of the entire report, including recommendations, and no longer than one (1) page in length. This may be the only page read by busy managers.


A system tool is required to prepare your level 0 data flow diagram. This includes software such as Word, Excel, Smartdraw or Edraw. There are many tools that are available to trial for free on the internet.


Marks will be deducted where you have exceeded the word count for your Assignment. The word countdoes notinclude your:



  • cover page;

  • executive summary;

  • table of contents;

  • tables of figures; and

  • referencing (in text citations and reference list).


Requirements



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APA must be used to reference all sources you have used for your assignment. The CSU Library site provides an on-line guide to APA style referencing. This is the referencing style adopted by the School of Accounting and Finance. The guide can be found at: http://student.csu.edu.au/study/referencing-at-csu.


Review the rules regarding plagiarism and if you are not sure contact your lecturer or student learning skills advisor for advice. There is no excuse for presenting the work of others as your own; this includes cutting and pasting material from the web without properly referencing the source.


Your assignment must be submitted via Turnitin in word format only.


Any difficulties in submitting your assignments online electronically using Turnitin should be immediately reported by email. Include your name and student number in the header or footer of all documents submitted. Retain a copy of your assignment for your records.

Answered Same DaySep 28, 2020ACC539Charles Sturt University

Answer To: Internal Controls and Systems Documentation Value: 20% Due Date: 15-Sep-2018 Return Date:...

Aarti J answered on Sep 30 2020
156 Votes
Internal Control and Systems documentation
Course Name
Course Date
Student’s Name
Internal controls and system documentation
Executive Summary
Internal control is one of the most important aspect of the organization which helps the company to safeguard its assets as well as organize its assets and working to have higher efficiency and control. In this paper we have analysed the inventory control of Platinum company. Platinum company has several drawbacks in its process for managing the inventory. Some of the measures which the company has to take to ensure that the inventory is managed effectively and efficiently like segregation of duties, authorization, proper documentation and inclusion and implementation of information technology and IT recording.
Internal Control and Systems documentation
Overview if the expenditure process relating to purchase, receipt, storage and issuance of raw materials
The raw materials of the company is kept in the storeroom and can be removed and used only on the order of the supervisor. The ordered materials by the company is directly delivered to the storeroom with the packing slip and details. The purchasing team of the company is matched to the valid purchase order which is found in the open purchase order file. The packing slip of the order does not have any corresponding purchase order and the quantity and the items in the purchase order are different to the approved purchase order. The purchase order is directly received by the purchase department and they pay to the suppliers. The company also does not follow perpetual inventory system and just performs the inventory check at the end of the month. The supervisor does the physical count to match up the quantities on hand. Upon the receipt of a material requisition form the purchasing team prepares the purchase order and email to the suppliers.
System tool to develop level 0 data flow diagram to document the raw materials purchasing process
Identification of Internal control weaknesses related to Platinum’s inventory management and expenditure process
Internal control is very important as it helps in organizing things and making sure that the control is adequate so that the company is able to protect its assets against the theft and waste. It also helps in ensuring that the company is compiling to the law and also helps in evaluating the performance of the personnel as well as efficiency of the operations.
Segregation of duties: In the company there are different internal control weaknesses which are being faced by the company. The first and the biggest weakness of the internal control is that the record of the inventory is not proper and adequate. The purchase team received the invoice directly from the supplier and then the purchase team send across the inventory directly to the...
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