Icas Plan Essay

764 WordsMar 4, 20134 Pages
ICAS Report Plan Name Email address Phone number 1. Sandwich Master Limited (SML) was established over seventy years ago by the Graham family. It makes and sells sandwiches and savouries to the general public. The company’s head office is on industrial estate just outside of Nottingham. A central savoury production centre is in Leicester a few miles away. Products are sold through a nationwide chain of over eighty street shops, and six regional bakeries. Department which is going to be reviewed is Sales Ledger (Accounts receivable). 80 % is made cash sales and the remaining 20 % on open credit terms. 2. A bank reconciliation statement is produced monthly which reconciles the cashbook to the bank statements.…show more content…
Customers are given open credit terms of 30 days, but in reality average payment is over 60 days. Also monthly credit limit for each account is set to £4,000 pounds which is more than the customer needs and more than is stated in company’s policy. | It’s having massive impact on the liquidity of the company (20% of the company’s revenue) and the trade receivables collection period. | The Payroll’s run by Payroll Clerk are usually based on incorrect information (estimated figures). It’s leading to situation where majority of employees are complaining about payments received. | It’s demotivating. Employees are being less enthusiastic about a job which is leading to inefficiency. Cost of work is increasing and the potential margin will be lower.As a result financial statements produced may contain incorrect figures. | Company policy relating to its IT systems is not followed by the employees. Majority of them is unaware of damages it may cause.Many of the shops may still have the same original password. There is no checks ever been carried out. | Potential loss of data or destroy of software might be really cost effective. Employees has a access to important information which shouldn’t been known or might alter figures leading to falsify the data. | Fraud Area of risk |
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