Evaluation of an Accounting System

There is a lack of formal procedure for receiving goods. What could be the impact on the company?

• Goods could be paid for when they have not been received or are of poor quality

• Enhanced customer loyalty
• Streamlined operations
• The impact on the company could include increased costs, decreased customer satisfaction, and operational disruptions.

There are no authorisation limits on Purchase Orders. What could be the impact on the company?

• Improved accuracy in spending
• Items may be bought unnecessarily or for the wrong price or fraudulently

• Goods could be paid for when not received

• Enhanced efficiency in procurement

Budget holders and Warehouse Manager can both raise orders and receive goods. What could be the impact on the company?

• Enhanced customer satisfaction, improved supplier relationships, and increased profitability.
• Fraud as goods could be taken for own use or unnecessary goods could be ordered

• Increased risk of errors, fraud, and lack of accountability.
• Improved efficiency, streamlined processes, and increased transparency.

Lack of formal procedure for authorising new accounts. What impact could this have on the company?

• Improved financial reporting accuracy
• Company may not be buying the goods at the best price

• Enhanced customer satisfaction
• Goods could be paid for and not received.

If the company is not using its website to make sales, what impact could this have on the company?

• The business could sell goods yet not have the stock to satisfy the order

• It could increase customer satisfaction
• It could negatively impact the ability for the company to make sales

• It could positively impact the company's revenue

Recording unauthorised orders placed is an example of

• Monitoring Procedures

• Review Procedures

• Reporting Procedures

Matching order to invoice and check differences is an example of

• Monitoring Procedures

• Review Procedures

• Reporting Procedures

Presenting the differences between till takings and cash banked is an example of

• Monitoring Procedures

• Review Procedures

• Reporting Procedures

Changes in taxation policy is an example of a

• Political Factor

• Economic Factor

• Social Factor

• Legal Factor

Changes in interest rates are an example of

• Political Factors

• Economic Factors

• Legal Factors

• Environmental Factors