FNSACC506 - Implement and Maintain Internal Control Procedures Report

This report, prepared by a student, evaluates the internal control procedures of Garden Worx Pty Ltd, focusing on the purchasing audit process. The report identifies several discrepancies, including unsigned purchase orders and invoices lacking purchase order numbers, indicating a failure to meet performance indicators. The findings highlight the need for improved training and induction programs for staff at all levels to address ethical issues and responsibilities. The report includes an initial evaluation report, an email to the CEO requesting feedback, a revised report incorporating the CEO's recommendations, and a final email to all staff communicating the new procedures. The core recommendation is to implement comprehensive training to ensure compliance with internal control procedures and improve the overall efficiency and integrity of the purchasing process.

Running Head: IMPLEMENT AND MAINTAIN INTERNAL CONTROL PROCEDURES
IMPLEMENT AND MAINTAIN INTERNAL CONTROL PROCEDURES
Name of the Student
Name of the University
Author Note

1IMPLEMENT AND MAINTAIN INTERNAL CONTROL PROCEDUES
Table of Contents
Assessment 4..............................................................................................................................2
Internal Controls Evaluation Report..........................................................................................2
Introduction............................................................................................................................2
Findings..................................................................................................................................2
Recommendations..................................................................................................................3
Email......................................................................................................................................3
Revised Evaluation Report.........................................................................................................3
Email......................................................................................................................................4
Reference....................................................................................................................................6

2IMPLEMENT AND MAINTAIN INTERNAL CONTROL PROCEDUES
Assessment 4
Internal Controls Evaluation Report
1)
Introduction
The purpose of purchasing audit is done for controlling the risk, preventing the fraud,
ensuring maximum savings as well as maintaining the regulatory requirements.
The criteria against which the evaluation of purchasing audit is that all the purchases
over $500 needs to be approval by Finance manager or CEO, all the purchases over $500 is
supported by the purchase order is signed by purchase office is based on the Finance manager
approval, all the invoices from the suppliers includes the purchase order number (Lee et al.
2015).
Findings
In the assessment of the meeting of the performance indicators, it has been find that
out of 40 purchasing orders, purchasing officer has not signed 10 purchasing order. The
purchasing officerapproved the purchase order of #670 and #450 that was worth for $640 and
$920. As per the note, CEO was not available. However, according to the performance
indicators, the purchases over $500 that is supported by the purchase order is signed by the
purchasing officer and approved by finance manager not CEO (Hrebicek et al. 2014). From
the total number of 80 invoices from suppliers, 40 invoices were reviewed from the period of
March to June 2017. The invoice numbered 96 on April 2, 2017, invoice 106 on May 5, 2017
issued by Spades Pty Ltd and Soils Pty Ltd. does not include the purchase order number, and
the purchasing officer already pays the invoice on April 5, 2017 and May 9, 2017 (He et al.
2017).

3IMPLEMENT AND MAINTAIN INTERNAL CONTROL PROCEDUES
All these audit of purchasing order shows that, the performance indicators have not
met for purchasing due to fault decisions and act by the purchasing officer.
Recommendations
The company is recommended that they should be provided with the strong induction
and training programs. Employees at all levels should be trained on all the ethical issues in
relation to their jobs, responsibility and authority. They should be inducted once they join the
organization. Strong training and induction programs for the new joining is essential for
meeting the performance indicators (Kariuki and Aduda 2016).
2)
Email
Dear Sir,
This is to inform you that I am attaching internal control evaluation report,which includes
purposes and criteria of evaluated purchasing audit, the findings and recommendations for
action.
Hence, I request you to provide the feedback and approvalin relation to this attached project
report for further actions.
Kind Regards,
Garden Worx Pty Ltd.
3)
Revised Evaluation Report
Input from the CEO

4IMPLEMENT AND MAINTAIN INTERNAL CONTROL PROCEDUES
It has been advised by the CEO of the company that, proper training and induction
programs should be provided to all the staff, including the new joiner and the time to time to
the existing employees for meeting the performance indicators.
4)
Email
Dear All,
This is to inform all the staff working in Garden Worx Ply Ltd. that, in order to implement
the new company procedures of internal control is the implementation of proper training and
induction programs.
Please find the attached revised evaluation report, which advices the requirement for the
checks and procedures of internal control by the implementation of training and induction to
the staffs regarding their roles and duties.
Kind Regards,
Garden Worx Ply Ltd.

5IMPLEMENT AND MAINTAIN INTERNAL CONTROL PROCEDUES

6IMPLEMENT AND MAINTAIN INTERNAL CONTROL PROCEDUES
Reference
He, G., Yang, J., Lu, Y., Wang, S., Chen, B., Hayat, T., Alsaedi, A. and Ahmad, B., 2017.
Ternary emergetic environmental performance auditing of a typical industrial park in
Beijing. Journal of Cleaner Production, 163, pp.128-135.
Hřebíček, J., Soukopová, J., Štencl, M. and Trenz, O., 2014. Corporate key performance
indicators for environmental management and reporting. Acta Universitatis Agriculturae et
Silviculturae Mendelianae Brunensis, 59(2), pp.99-108.
Kariuki, E.N. and Aduda, J., 2016. Procurement Performance Measurement In Commercial
Banks In Kenya. International Journal of Business Strategies, 1(1), pp.10-25.
Lee, Y.C., Hsiao, Y.C., Peng, C.F., Tsai, S.B., Wu, C.H. and Chen, Q., 2015. Using
Mahalanobis–Taguchi system, logistic regression, and neural network method to evaluate
purchasing audit quality. Proceedings of the Institution of Mechanical Engineers, Part B:
Journal of Engineering Manufacture, 229(1_suppl), pp.3-12.