Internal Control of Woolworth Essay

This course is the first in a two-part series that deals with auditing a company 's financial reports, internal controls, and

Sales invoices are prepared in batches on a daily basis using numbered sales invoices. Sales invoice numbers are automatically generated by the company’s computer system. The accounts receivable clerk does not have appropriate computer rights to override the computer-generated invoice number. Upon preparing sales invoices, the accounts receivable clerk verifies that the first invoice number of the batch is consistent with the last invoice number of the previous batch. Inconsistencies or skipped sales invoice numbers are investigated and resolved before new sales invoices are prepared. The items shipped are compared to the items billed for proper quantity, price, and other sales order terms.

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.

There are many rules companies must follow whenever documenting financial information or any other data which is gather during any business transactions. In order for said companies to report financial information internal controls have to be put in place as companies have to adhere to certain laws and regulations. Internal controls can be defined as a process which companies follow in order to ensure all financial reporting is done in a reliable and lawful manner. Some think of it as a system which works within a system as it plays a major role on the success of a company’s accounting system. At the organizational level, internal control objectives relate to the reliability of financial

The accounts payable department reconciles the vendor invoice, purchase order, and receiving report prior to approving the payment to the vendor.

Inventories are in essence what organisations hold with an intention to sell, however directly or indirectly. For most businesses, this is how their profits are made, and it is reasonable to assume that these items account for much of an organisation’s activities. Such a big influence on indicators of financial performance and position warrants an equally large need for regulation to ensure that users of the financial statements are given a clear picture of the state the organisation is in. The Australian Accounting Standards Board (AASB) is responsible for developing the standards that govern the way reporting entities disclose their accounting figures. Despite much

When a consumer purchases an item, via the internet or in store, they are not only placing an order for the item, but providing feedback into consumer trends, thus feeding the demand chain. The retailer then places an order with the distributor, who receives and processes the order. Most systems have their retailers set up with automatic credit verification and payment is processed. Once the payment has been processed the order is then packaged and shipped out to the retailer. It is shipped via truck or train to the retailers, where they take the items and

Auditors have the responsibilities as well as management to report internal controls. The auditors must examine closely management’s claim of effectiveness and also physically test the controls. After the examination, the auditors should express their opinion and any recommendations to fix any internal control weaknesses.

The interview with Colin Smith, from Office Products Depot, meant I was able to identify the accounts receivable subsystem they used and their accounts receivable management. I focussed on their policies for the offering and checking of credit, managing credit levels, charging the credit customers, receiving payment from credit customers and the general management of credit customers. I will be using the information from the interview with Colin as well as information from fictitious accounts receivable to explain their policies.

Woolworths is a conventional supermarket owned by Woolworths Limited. It started as a basement store in Pitt Street in 1924, and is now one of the leading competitors in the supermarket business. With over 850 stores in Australia, and 110,000 Woolworths staff, they provide

The first Woolworths store opened on the 5 December 1924 in Pitt Street Sydney. In 1993 Woolworths Ltd was offered to the public in the largest share float in Australian history and investors responded by applying for 2.65 billion. In 2007, Woolworths opened its first new “Green” supermarket, which incorporated equipment that reduced energy usage, water usage and waste generation and minimises the use of materials that can cause environmental harm. Furthermore, in 2008 Woolworths set about rebranding their Safeway products and stores in Victoria to the Woolworths brand. Finally, in 2010 Woolworths celebrated their 86th year in the retailing business.

When the first Woolworths supermarket open, the Founding CEO Percy Christmas has stated that a key principle for Woolworths were “Every man, woman and child needs a handy place where good things are cheap” which has been insisting by all the Woolworths employees and suppliers until now. Now Woolworths has more than 3,000 stores in Australia and New Zealand that span food, liquor, petrol and general merchandise. (Woolworths Limited, 2015).

Woolworths Limited is an Australian retail company. Judging by market share and sales, Woolworths is the largest food and liquor retailer in Australia. The first store was opened on Friday, 5 December 1924, and today Woolworths operates 1000 stores around Australia.

Woolworths supermarket is an Australia’s supermarket and grocery store chain owned by Woolworths Limited which was founded in 1924. They operate

The business took off, thriving at a relentless rate amid the war years. In 1931, Woolworths Australia opened stores in Auckland, Wellington, Christchurch and Dunedin and we were chosen to supply them with an extensive variety of confectionery.