Inkwell Ltd Essay

870 Words4 Pages
Inkwell Ltd

Review of Inkwell Ltd’s accounting system and the effectiveness of its internal controls and recommendations for improvement.

This report is submitted for assessment of competence in AAT Learning and assessment area Internal Control and Accounting Systems that compromises the two QCF units: * Evaluation of Accounting systems * Principles of Internal Control

List of Contents

1. Terms of Reference

2. Executive Summary

3. Methodology

4. Nature of Business

5. Current Accounting Function

6. Review of the Accounting System 1.
Terms of Reference

2.1 This report has been prepared to cover the requirements of AAT Learning Assessment area ‘Internal Control and Accounting
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Anil Gupta invested into Inkwell two years later and joined as the Finance Director, bringing her strong experience of being a Finance Director of a large manufacturer of cartridges.
Structure and Shareholders of Inkwell Ltd
4.4 Inkwell Ltd is a limited company and has three shareholders within the business. The current board and shareholding is as follows : Paul Farnon, also the managing director, owns the largest share of 40% invested and profit share , Victoria Dawson, Sales director, owns 30% of the profit share and Anil Gupta, Finance Director owns 30% shares. Being the investors and managers of the organisation all three shareholders are concerned with Inkwell Ltd.’s financial performance in order for them to evaluate what return they will receive on their investments.
4.5 Employees are also concerned with the financial performance of Inkwell Ltd as they are paid wages/salary from Inkwell and other benefits. It employs around 180 full-time equivalent employees.
4.6 The suppliers of the re-manufactured inkjet cartridges will also be interested in the financial position of Inkwell Ltd as they will want to know if Inkwell can pay any arrears and also as Inkwell is a regular customer of theirs, If Inkwells sales go down then so will the amount they purchase of their suppliers.

5. Current Accounting Function of Inkwell Ltd.

6.3 Within the Accounting Function of Inkwell ltd
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