Accounting Information System - Internal Controls and Corporate Credit Cards

Accounting Information System
Student’s Name:
Student’s ID:
1

Contents
Executive Summary:....................................................................................................................................3
Introduction:...............................................................................................................................................4
Overview of the sales process of Bucks Phyz:..............................................................................................5
Internal control operations in Bucks Phyz:..................................................................................................6
Review of impact of incorporation of credit cards......................................................................................9
Benefits and potential risks associated with the introduction of corporate credit cards within Bucks
Phyz:........................................................................................................................................................9
Specific Internal Controls which should be implemented by Bucks Phyz to minimize the impact and
occurrence of the risks:.........................................................................................................................10
Recommendation to the CEO regarding who should be issued with a corporate credit card and the
associated reason:.................................................................................................................................11
Conclusion.................................................................................................................................................12
References.................................................................................................................................................13
2

Executive Summary:
There are various transactions involved in the company’s accounting system for which different
types of control should be implemented within an organisation to have an effective and efficient
operational process to be operated. The management of the company should strive to achieve and
operate an internal control system with the use of manual and programmed procedures in order
to reduce and eliminate the chances if various errors and frauds in the company. The application
of sound internal controls in the organization will bring financial success to the organization. The
corporate structure of the company needs to be in proper directions and the employees must be
assigned with appropriate responsibilities in order to manage the different affairs of company.
The corporate credit cards has emerged as a innovative way of making small business payments
in an economy and the use of this payment method will bring efficiency and effectiveness in
payment process.
3

Introduction:
The major objective of the report is to assist the users in describing and understanding the
various types of risks and internal controls operating the sales process of company and the
recommendation of necessary improvements that can be made regarding these internal control
weaknesses. The report will include the introduction of sale process of the company Bucks Phyz
and identifying the weaknesses in the internal control while suggesting some improvements in
the same. The introduction of new credit card policy will be evaluated for the purpose of
increasing the efficiency level of payment process.
4