Auditing

Audit BUSI 0006-H Case Synthesis 1 Red vaporous student lodging & Café Internal Control on financial Reporting Group division Lee Yuk Ying 2008144814 Lui Kei Chi 20096262560 Yuen humankind Hong 2009530474 Huang Jialin 2009800594 2012/2/21 1. One of the biggest concerns in the motel wrinkle is that motel revenue enhancement faculty be understated by the twin. As the contend is amenable for most of the motel operations exchangeable maintenance of military control 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 localise up a set of proper bookkeeping policies and procedures. For example, keeping a depone record book for all transactions while requiring a avow description 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 notice for all business transactions as to assuage the risk. An mugwump assurance provider could to a fault be employ to serve periodic checks to make sure the accounts are accurate. 2.

For the café business, the couple may allow their families and friends to gravel meals with special discounts or even without charge. To misrepresent the possible loss, separation of duties provoke be utilize here. For instance, the transgress should not be the same person responsible for enter the busine ss transactions. Computerized devices such a! s PDA can also be installed so orders will be record accurately without orders omission. Another high risk fraud is the couple might purchase rough 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 periodically and requiring the approval from Matthew before making any payments to suppliers. 3. In...If you indispensability to have a full essay, order it on our website: OrderCustomPaper.com

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