Accounting Controls And Administrative Controls

1359 Words6 Pages
To: Mr Barry Mundy From: Miss J. Polistena Date: 15th of October 2015 RE: Interpretation and Evaluation 1.0 Introduction 1.1 Internal Controls Internal Controls are often defined as the methods or procedures implemented by a business to safeguard its assets, ensure all financial data is accurate, adhere to financial policies and to generally assist in professionally achieving the business’ overall objectives. Internal Controls are categorised into Accounting Controls and Administrative Controls. Accounting Controls deal specifically with the accuracy of financial reports and auditing and include the policies that protect a company’s finances, whereas Administrative controls assist in determining the delegation of duties among employees and the use of personnel policies. 1.2 The Boat Shed Owner of The Boat Shed, Barry Mundy, doesn 't seem to have much control over the business, despite it 's rapid growth. The business ' profits have continued to increase, however the recent cashflow has become a cause of concern. As a result, Barry Mundy has also opted for an overdraft facility to ensure he always has enough cash to meet his commitments. With the aim of ultimately improving cashflow, current strategies will be analysed and recommendations will be made to encourage any necessary improvements. 2.0 Cash Controls 2.1 Importance of Cash Cash is a very
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