Paper
- Submitted by: skitzyd43
- Views: 124
- Category: Other
- Date Submitted: 12/02/2015 03:32 PM
- Pages: 3
- Report this Essay
4. Review of Current Accounting System
4.1 The accounts receivable ledger is one of CPL’s accounting systems. The purpose of the accounts receivable ledger is to record all accounting aspects of the relationship with any customer who receives credit from CPL (trade receivables). The ledger can give an overall view of the relationship between the trade receivables and CPL at any given time. Each customer will have a customer account within the accounts receivable ledger which all invoices, credit notes and payments are recorded. The balance on the accounts receivable ledger is the amount of money owed to CPL by customers.
4.2 Internal controls are policies and procedures which are adopted in order to ensure that business is being conducted appropriately, that errors are detected and adjusted in a timely manner and to ensure that legal and internal requirements are being met. There is also a need for internal controls to detect and prevent fraud within a company.
4.3 Fraud is generally defined as “the use of deception with the intention of obtaining an advantage, avoiding an obligation or causing loss to someone else or to an organisation”. Fraud is a criminal activity within the UK and is covered by the Fraud Act 2006. The types of fraud covered by law are theft, false accounting, bribery and corruption, and deception. If a person is found guilty of fraud, they are liable to a fine and imprisonment.
4.4 The accounts receivable clerk is responsible for all data input into the ledger at the end of the month, raising sales invoices and credit notes, producing monthly statements and reconciling debtor’s payments. Spreadsheets are used for credit control purposes as the ledger is run on specially written software and only updated monthly.
4.5 The credit control clerk is responsible for making online credit checks on all new credit customers and making recommendations of credit limits. They communicate with the debtors, ensure that outstanding payments...
4.1 The accounts receivable ledger is one of CPL’s accounting systems. The purpose of the accounts receivable ledger is to record all accounting aspects of the relationship with any customer who receives credit from CPL (trade receivables). The ledger can give an overall view of the relationship between the trade receivables and CPL at any given time. Each customer will have a customer account within the accounts receivable ledger which all invoices, credit notes and payments are recorded. The balance on the accounts receivable ledger is the amount of money owed to CPL by customers.
4.2 Internal controls are policies and procedures which are adopted in order to ensure that business is being conducted appropriately, that errors are detected and adjusted in a timely manner and to ensure that legal and internal requirements are being met. There is also a need for internal controls to detect and prevent fraud within a company.
4.3 Fraud is generally defined as “the use of deception with the intention of obtaining an advantage, avoiding an obligation or causing loss to someone else or to an organisation”. Fraud is a criminal activity within the UK and is covered by the Fraud Act 2006. The types of fraud covered by law are theft, false accounting, bribery and corruption, and deception. If a person is found guilty of fraud, they are liable to a fine and imprisonment.
4.4 The accounts receivable clerk is responsible for all data input into the ledger at the end of the month, raising sales invoices and credit notes, producing monthly statements and reconciling debtor’s payments. Spreadsheets are used for credit control purposes as the ledger is run on specially written software and only updated monthly.
4.5 The credit control clerk is responsible for making online credit checks on all new credit customers and making recommendations of credit limits. They communicate with the debtors, ensure that outstanding payments...