Bpr at Ford Motor Company, India

Receivables system: Five transactions were selected at random from the first three quarters of fiscal 2007 and we found that TCC’s authorization controls over bad debts and recoveries were effective. However, based on information provided by prior year 2006 audit file of the bad debt owed by Kmart and the inability to pay there should be a further investigation into the recovery of the bad debt owed by Kmart in 2007.

First, we conducted risk-based approach with data analysis techniques-unusual invoice and unusual comments, to identify the unusual items that are in the accounts receivable detailed listing, and tested whether there are invoices outside the expected range of invoice number and “special” comments associated with accounts receivable items. As a result, there were no invoice number out of range, and Invoice 1000919, 1000845, 1001097 are “special” comments associated with accounts receivable.

Ford Motor Company, a global automotive industry leader based in Dearborn, Michigan, manufactures or distributes automobiles across six continents. It is a publicly traded company on the New York Stock Exchange. The Company has about 198,000 employees and 90 plants worldwide with the automotive brands include Ford and Lincoln. The Company also provides financial services through Ford Motor Credit Company. The revenue of the company is $136.26 billion with a net income of $20.21 billion by 2011.

Ford is the second-biggest U.S based automaker (after General Motors) and the fifth-biggest in the world (behind Toyota, VW, Hyundai-Kia and General Motors) in view of 2015 vehicle production.

Sales invoices are prepared in batches on a daily basis using numbered sales invoices. Sales invoice numbers are automatically generated by the company’s computer system. The accounts receivable clerk does not have appropriate computer rights to override the computer-generated invoice number. Upon preparing sales invoices, the accounts receivable clerk verifies that the first invoice number of the batch is consistent with the last invoice number of the previous batch. Inconsistencies or skipped sales invoice numbers are investigated and resolved before new sales invoices are prepared. The items shipped are compared to the items billed for proper quantity, price, and other sales order terms.

There are several red flags in the invoices. There are several invoice numbers that are repeated and have an A at the end of the repeated invoice.

Although Sutter Health was rapidly expanding, they did not have the financial framework to support their collections department. Managers and medical personnel were not able to access financial documents that were critical to collection operations, and managers and patient care services, resulting in delayed reports. Often reports would not be generated until the end of the month. Another complication with the previous accounting system used by Sutter Health was it did not support the requirements managers necessitated, and lacked detailed financial data. The central business office (CBO) was also unable to access financial information transferred by departments within the network which is a huge problem as the CBO controls accounts receivable and accounts receivable generates revenue for the organization to make a profit.

The interview with Colin Smith, from Office Products Depot, meant I was able to identify the accounts receivable subsystem they used and their accounts receivable management. I focussed on their policies for the offering and checking of credit, managing credit levels, charging the credit customers, receiving payment from credit customers and the general management of credit customers. I will be using the information from the interview with Colin as well as information from fictitious accounts receivable to explain their policies.

Tighten up collection of receivables so that receivables account for less than 19% of Sales (1985). Pursue more aggressive strategy of collections;

Ford Motor Company is an American automaker, it is the world's fifth largest automaker based on worldwide vehicle sales. Its headquarters are based in Dearborn, Michigan, which is a suburb in Detroit. Henry Ford founded Ford Motor Company on June 16, 1903 and it became one of the largest and most profitable companies in the world, as well as being one of the few to survive the Great Depression. Ford Company is the largest family-controlled company in the world; it has been in continuous family power for over 110

d. Trace the date, check number, and amount of outstanding item – Occurrence & Completeness. (AU-C 315.A114 a.i-ii)

Ford’s vision statement, “people working together as a lean, global enterprise for automotive leadership” (Thompson, 2015) has three major points that surrounds the vision statement; which are global leadership, emphasis on stakeholders, and lean business (Thompson, 2015). Each area is a specific point that Ford concentrates on in order to better the business. Global Leadership indicates that Ford wants to become a top player in the international market; Ford achieves Emphasis on Stakeholders through enhancing their HR policies and corporate social responsibility strategies for employees, customers, investors, and others; and Lean Business which they have

The Ford Motor Company, founded in 1903 by Henry Ford, is synonymous with American innovation and capitalism. With iconic branding and revolutionary

Ford Motor Company is considered a global automotive industry leader. Ford was able to reinvent themselves to be able to stay ahead of the economic downturns. Ford has continually improved their overall profit and recently started paying

Consumer and Industrial Products, Inc manufacture a variety of different products for individuals and businesses. Due to ineffective accounts payable system, Consumer and Industrial Products, Inc started a new project called Payables Audit Systems (PAS). The process of beginning this new project was taken very seriously. Roles were assigned and defined. Ted Anderson was the director of the project. Peter Shaw was assigned the responsibility of user project manager. The user project manager was “responsible for making sure that the system meets the user department’s