¶ … Internal Control and Accounting Analysis of ABC Limited: Analysis of Weaknesses and Recommendations
The report was prepared to cover the requirements of the AAT ICAS unit. The AAT ICAS refers to an Internal Control and Accounting System where the report serves as investigation of the weakness area of the business control and makes the recommendation to fix this problem. The following report reviews the restaurant business particular in payroll area.
The report reviews the accounting system of ABC Limited and makes recommendations.
The report was carried out via observation. A certain business was chosen; the researcher asked permission of the manager of the business and spent three days, one in each restaurant observing the premises and the workers at their work. The researcher acted as inconspicuous observer. She also interviewed the different workers in an informal manner regarding the tenor and quality of their work. She conducted background research on the history and work of the restaurant, as well as on tasks associated with a restaurant. Finally, she prepared a survey of 10 items, Likert style that questioned accountant and managers on their economical operations and accounting strategies. All workers were informed about the research before being asked to complete questionnaire and results of survey were handed back to manager for approval and confirmation.
Executive Summary
The following report is about ABC Limited a thriving restaurant chain that is located in London and specializes in pan Asian cuisine. There are three restaurants, (Restaurant A, Restaurant B. And Restaurant C), in London. There are around ten staffs in each restaurant. The main head office is on the first floor of Restaurant B. The average turnover for Restaurant A, B and C. are £ 1040000, £780000 and £52000 respectively. Strengths are that the corporation is relatively simple which can engender change in afar easier, less complex way. Weaknesses are that there are grave holes in the internal accounting system. Recommendations for weaknesses include training for staff and for managers as well as certain amendments in internal accounting system.
The company can expect greater profit and reduced seepage of money as well as wastage of time.
1. Introduction:
1.1 Overview of the business
ABC Limited is a restaurant group, which provides delicious pan Asian cuisine to the customers in London. There are three restaurants, (Restaurant A, Restaurant B. And Restaurant C), in London. There are around ten staffs in each restaurant. The main head office is on the first floor of Restaurant B. The average turnover for Restaurant A, B and C. are £ 1040000, £780000 and £52000 respectively.
The internal major stakeholders work for the business directly and are affected by wages and job stability. The director obviously wants the restaurant to profit and become a business success. Workers want the business to be successful too so that then they can receive bonuses and maintain a stable, lucrative job.
The internal major stakeholders are as follow.
1. Director
2. Management
3. Employee
The external major stakeholders are involved with the company but are not employed directly by the company. The customers, for instance, are interested in prices and quality of the product. Suppliers are interested in the success and stability of the company so that they can ensure that they will have a customer in the future. The government is interested in the company's pay taxes and the quality as well as amount of the people that they staff.
The external major stakeholders are as follows.
1. Customers
2. Suppliers
3. Media
4. HMRC
5. Companies House
The business relationship is critical to the success of the business because a business can only work with each of these components in place and interconnected. As noted, the business needs management to direct it. It needs customers to sell to and to enable it to continue. A business too needs people to invest in it and enable it to have a start-off particularly in the beginning when the business needs to have enough money to succeed and with which to buy the necessary equipment and hire the necessary people. It needs banks to provide it with loans; but these may be insufficient or banks may be reluctant. Angel investors are, therefore, another solution. These are people who are willing to risk a portion of their money in order to give the business a try.
Suppliers are needed in order to supply the company with the needed resources and goods. So, for instance, ABC Limited being a restaurant group would need suppliers to supply it with food products, dishware, tableware, and so forth at reasonable prices in order...
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