Auditing and Control: Recommendations for Jertsy Ltd's Weaknesses

This report provides an analysis of the audit conducted on Jertsy Ltd, a fashion clothing retailer. The assessment identifies several weaknesses in the company's existing system, including issues related to overstocking due to inadequate inventory control, the lack of proper segregation of duties, inadequate security and storage arrangements, and insufficient disaster recovery and insurance arrangements. The report also critiques the company's approach to staff training and stock records management. For each identified weakness, the report offers specific and actionable recommendations to improve internal controls, enhance operational efficiency, and mitigate potential risks. The second part of the report discusses audit assertions and substantive procedures, providing a detailed examination of the audit process and its implications for the company's financial reporting and overall governance.