Auditing

Audit BUSI 0006-H Case Synthesis 1 Red impolite student lodging & Café Internal Control on pecuniary Reporting Group division Lee Yuk Ying 2008144814 Lui Kei Chi 20096262560 Yuen military man Hong 2009530474 Huang Jialin 2009800594 2012/2/21 1. One of the biggest concerns in the motel avocation is that motel tax income aptitude be understated by the twin. As the pair is amenable for most of the motel operations exchangeable maintenance of business 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 particularize up a set of proper bookkeeping policies and procedures. For example, keeping a depone record book for all transactions while requiring a avow narrative to be sent to Matthew indirectly for checking purpose. There is likewise a tendency for the couple to include p ersonal expenses in the business expenses account. Matthew underside require the couple to keep both reception for all business transactions as to assuage the risk. An indie assurance provider could similarly be employ to coif 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 postpone the possible loss, separation of duties provoke be utilize here. For instance, the rupture should not be the same person responsible for arranging the business transactions. Comput erized devices such as PDA can also be insta! lled so orders will be record accurately without orders omission. Another high risk fraud is the couple might purchase approximately 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 obtain a full essay, order it on our website: OrderCustomPaper.com

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