Accounts Department Production Department Store Department

- Accounts Department:

- Production Department

Store Department

- Human resource Department

Prepare a summary that identifies the department, the weakness or threat, and control that you will implement in the new system.

Discuss at least three internal control weaknesses or threats in each of the four departments that you are working with (12 in total).

Explain why a weakness exists and the steps that you will implement in your new system to address these issues.

Solution

Accounts Department:

Weakness:

Lack of Segregation of Duties

Having No monetary Limits (Travelling Expenses, Disbursement of Expense So..)

Lack of proper Internal Control Over usage of assets or resources

Threats:

   Creation of factious Expenses without actual Expenditure

   Disbursements more than limits (not following limits)

Controls: Implementing a strong Internal controls over Spending and disbursement of expenses and insists minimum two members for approving expenses incurred and reimbursing such expenses and ensure limits are properly designed.

Production Department:

Weakness:

Idle Time

Lack of skilled Persons

Threats:

Not reaching the Target production

Controls: Change the technology or increase the production capacity in order to reach the production and take necessary steps towards reducing The Idle Time and try to recruit skilled persons in order to train and motivate the employees to reach the target production

Store Department:

Spoiling

Theft

Inappropriate use(personal Consumption)

No Proper recording of Inputs and Outputs

Controls: Implement the CCTV Surveillance in order to protect from theft, spoiling, personal use and Bar code system to help recording input and output.

Human resource Department:

Inappropriate recording the staff working time

Recruiting Inefficiency persons

No Proper Recording of Salaries or wages

Controlling: Installing the finger print system which might to be record the checked in and check out in order to find effective working time and Test recruiting persons with suitable test by setting time, Ensure to day to day recording and intimating those wages and salaries to top management so that they will record on time.