Auditing

Audit BUSI 0006-H Case Synthesis 1 Red open student lodging & Café Internal Control on fiscal Reporting Group division Lee Yuk Ying 2008144814 Lui Kei Chi 20096262560 Yuen domain Hong 2009530474 Huang Jialin 2009800594 2012/2/21 1. One of the biggest concerns in the motel production line is that motel taxation capacity be understated by the twin. As the champion is amenable for most of the motel operations exchangeable maintenance of line and rental records and most important, cash handling, at that place is a likely chance for them to understate the business r flatue in case the internal control is not qualified enough. In order to reduce the risk, Matthew could pin down up a set of proper bookkeeping policies and procedures. For example, keeping a depone script for all transactions while requiring a avow direction to be sent to Matthew indirectly for checking purpose. There is likewise a tendency for the couple to include personal expenses in the business expenses account. Matthew underside require the couple to keep both receipt for all business transactions as to assuage the risk. An free lance assurance provider could likewise be employ to bring to pass periodic checks to make sure the accounts are accurate. 2.

For the café business, the couple whitethorn allow their families and friends to gravel meals with special discounts or even without charge. To cook the possible loss, separation of duties provoke be utilize here. For instance, the storyteller should not be the same person responsible for transcription the business transacti ons. Computerized devices such as PDA can al! so be installed so orders will be record accurately without orders omission. Another high risk fraud is the couple might purchase any(prenominal) cheaper ingredients and record as if they have purchased some expensive, high quality ingredients to earn the difference. This risk can be reduced by requesting suppliers to send out receipt to Matthew sporadically and requiring the approval from Matthew before making any payments to suppliers. 3. In...If you indispensability to thwart a full essay, order it on our website: OrderCustomPaper.com

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