Kornsen Industries Executive Summary

Reconciling all sub-ledgers to the general ledger for accurate interpretation of the business activity. For example, Accounts Payable Aging Report will be compared to the General ledger for the Accounts Payable account. The auditor must scan future payable transactions to see if they affect the current company outcome.

Operations is separate from the accounting department. The employees in operations handle promoting the products. Also, Operations is in charge of making the products. The company’s accounting system is handled in-house by the cashier and the bookkeeper and by the accounting firm hired to handle the businesses’ financial reporting. The cashier handles all sales through the register. The register is balanced against the drawer each night by the bookkeeper and a deposit made the same day. The bookkeeper gives the accountant the drawer receipts and bank receipts for journal entries and later reports. The accountant checks all cash received and payments made against bank statements and collected paperwork. There is not a single person assigned to do all duties.

One of the most important parts of a business is the financial management. Each and every other company always strives to have the best management when it comes to its finances. Most organizations have come up with plans and marketing strategies. This is due to the fact tat when companies finances are poorly managed then definitely the whole company is likely to be in trouble or even come down. The financial techniques and principles in most cases comprise of quite a number of aspect for instance those that we intend to look at in this paper-the financial reporting. This will basically comprise of the quality of data and information that the company produced to some of the various stakeholders. Other than that, the paper will also analyze the financial position and performance of the organization using accounting ratios. Another important aspect of financial principles is costing. This basically entails the cost of producing goods and services in the company and how it generally affects the overall performance of the company. The paper will also delve into how important costs in the pricing strategy of the business are. It will further come up with a costing and pricing system that can help the company improve. Last but not least, we focus on the company's budgets and budgetary control. Here there are very important areas that have to be looked into, for

With every internal control weakness a company needs to identify either a control policy or control procedure that will help prevent error or fraud from occuring in the future. Based on my suggestions as to what weaknesses existed at Goodner Brothers, Inc. I have suggested the policies or procedures that could be implemented to help prevent future issues. The internal control I would implement to hinder employee access to the accounting system would be to secure all computer programs with individual usernames and passwords to prevent access from others. The bookkeeper should be the only employee with access to the accounting system and to test this procedure the company would need to try and access the software without a username and password. To monitor the storage warehouse situation, the company should install computer scanning systems and video cameras at each location to supervize whether tires are being scanned in and out upon delivery and pick-up and to determine who and when these transactions are taking place. Semi-annual reviews should be conducted by sales managers to evaluate their sales representative. In addition, strengthening the tone at the top mentality should lie in the hands of each owner by personally reviewing all sales managers to create a top down effect.

D.(2)- As goods leave the shipping dock, the system generates a bill of lading and associated sales invoice, which is automatically recorded in the sales journal.

Keller needs to discuss the weaknesses in Smackey’s internal controls with Sarah as the president and manager of operations. The internal control issues that need to be pointed out are the lack of separation of duties in the inventory production and records, the improper classification of accounts receivables, and improper checks on performance of the sales personnel. As soon as Keller became aware of the significant deficiencies in the internal controls of Smackey, they are required to notify in writing to the governing bodies of Smackey. A

Income statements and balance sheets were reviewed to summarize the following key points that could

If goods are sold _____________ and are in transit at the end of the period, they should be included in the seller’s inventory.

The Inventory table contains the components that make up an Item. It is used for managing inventory and determining the availability of ingredients that go into prepared items, such as bakery products, etc. Each record in the inventory table is linked to the Item table by the item_id and to the Supplier’s table by the supplier_id.

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

・Incorrect items were received and returned in full (risk - excess inventory and A/P. are recorded)

How to update inventory records to get timely data? How to reduce inventory levels of the company?

A common way of decreasing the amount of inventory a business holds on a daily basis is implementing a just-in-time inventory process. A Just-In-Time inventory system means that the business gets the materials for a product, as they are demanded. “The electronic data

Van der Horst) whether one of the KPI’s could be a monthly loan book in the amount of R30 Million for a stable company and in line with that a normalised income as calculated. The Chairman confirmed that it would be. Mr. Van der Horst explained that in principle it would be a good KPI’s. Furthermore, at the moment the following business KPI’s are present. 1. Cash in, Cash out. (To ensure that there is more cash in than cash out.) 2. Income vs Expenditure. (To ensure that there is more income than expenditure). 3. Operational cost. (Mr. Van den Host together with Ms. Theunissen is currently formalising modules how to run the company with R 4 Million, R3 Million and R 2.5 Million operational cost.)4. Loan book. (How we value it, how it behave, how old it is, what is the impact of our credit policies and what the distribution channels are when effecting this asset in terms of value, income producing capability and sustainability going forward.

Profits are made by the means of sales of goods through local advertising and promotions. In spite of the customer based engaged by Jimm sales are still recorded manually and it is difficult to calculate business profit, stock re-ordering and customer documentation due to the limitation of paper/manual filling system.