Internal Controls in Cookridge Carpets

4702 WordsSep 16, 201219 Pages
Student Notes aat QCF Level 4 Internal Control and Accounting Systems STUDENT NOTES 1 Contents Section 1 2 3 4 Introduction and Assessment Outcomes and Criteria Internal Controls and Fraud Finding weaknesses and making recommendations Business English Report Plan Deadlines Report Guide Other requirements page 3 6 9 12 5 6 7 8 9 18 19 25 27 38 2 1 Introduction and Assessment What is ICAS Internal Control and Accounting Systems (ICAS) requires students to write a 35004000 word report to show their knowledge of internal controls and evaluating accounting systems. You will be required to identify areas of weakness that could lead to errors in the accounts, and to assess the potential for fraud to occur. You…show more content…
1.2 Explain the various business purposes for which the following financial information is required • Income statement ( profit and loss account) • Forecast of cash flow (cashflow statement) • Statement of financial position (balance sheet) (NB explain the statements relevant to your organisation) 1.3 Give an overview of the organisation’s business and its critical external relationships with stakeholders 1.4 Explain how the accounting systems are affected by the organisational structure, systems, procedures, and business transactions. 1.5 Explain the effect on users of changes to accounting systems caused by • External regulations • Organisational policies and procedures 6 2 Understand the importance and use of internal control systems 2.1 Identify the external regulations that affect accounting practice. 2.2 Describe the causes of, and common types of, fraud and the impact of this on the organisation. 2.3 Explain methods that can be used to detect fraud within an accounting system. 2.4 Explain the types of controls that can be put in place to ensure compliance with statutory or organisational requirements. 3 Be able to identify 3.1 Identify weaknesses in accounting systems and use appropriate • Potential for errors accounting system
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