Project Proposal
- Submitted by: Billyspurs94
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- Category: English
- Date Submitted: 08/07/2016 02:32 AM
- Pages: 3
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Project Proposal
Describe your organisation briefly:
Chic Paints Ltd (CPL) is a limited company, formerly part of Ashstead Plc, but was subject of a management buyout six years ago by five of its Directors (Greg, Jane, Ruth, Ahmed and Susan) after a period of time Jane was replaced by Dave. The company has a board of five Directors and major shareholders, two of which are trying to sell there shareholdings. Chic Paints Ltd has a turnover of £120 million with a 30% gross profit margin. The company is a manufacturer of specialist paints.
Describe the part of the Accounting system you have chosen to analyse:
The analysis will be based on the Payroll System as many weaknesses have been identified in this area The report will be based on the Payroll system as many weaknesses have been identified within this area of the Accounting system. List of example weaknesses below.
Weaknesses
Ethical
* Wages have been collected by unauthorised employees on behalf of there colleagues but without there permission. This is a clear violation of the company’s policy.
Internal Control
* Working out wages by guesswork without using time sheets
* Cash wages are not double checked to prevent errors
* There is no control in place for setting up a new employee
* Wages being processed are not required to be authorised by a senior manager
Efficiency
* There is only one employee who knows how to use Sage payroll
* Two separate payrolls running Sage 50 software, one for salaried staff and one for hourly paid staff.
* Around a quarter of hourly-paid employees are still paid in cash
* Cash withdrawn from the bank for the hourly-paid employees is not recorded in the petty cash
* Human Resources have authorisation to access Sage 50 payroll system.
* When cash is kept in the accounts office overnight, there are no recordings of cash balances and cheques.
Describe the staff that work in the accounting department:
Susie James,...
Describe your organisation briefly:
Chic Paints Ltd (CPL) is a limited company, formerly part of Ashstead Plc, but was subject of a management buyout six years ago by five of its Directors (Greg, Jane, Ruth, Ahmed and Susan) after a period of time Jane was replaced by Dave. The company has a board of five Directors and major shareholders, two of which are trying to sell there shareholdings. Chic Paints Ltd has a turnover of £120 million with a 30% gross profit margin. The company is a manufacturer of specialist paints.
Describe the part of the Accounting system you have chosen to analyse:
The analysis will be based on the Payroll System as many weaknesses have been identified in this area The report will be based on the Payroll system as many weaknesses have been identified within this area of the Accounting system. List of example weaknesses below.
Weaknesses
Ethical
* Wages have been collected by unauthorised employees on behalf of there colleagues but without there permission. This is a clear violation of the company’s policy.
Internal Control
* Working out wages by guesswork without using time sheets
* Cash wages are not double checked to prevent errors
* There is no control in place for setting up a new employee
* Wages being processed are not required to be authorised by a senior manager
Efficiency
* There is only one employee who knows how to use Sage payroll
* Two separate payrolls running Sage 50 software, one for salaried staff and one for hourly paid staff.
* Around a quarter of hourly-paid employees are still paid in cash
* Cash withdrawn from the bank for the hourly-paid employees is not recorded in the petty cash
* Human Resources have authorisation to access Sage 50 payroll system.
* When cash is kept in the accounts office overnight, there are no recordings of cash balances and cheques.
Describe the staff that work in the accounting department:
Susie James,...