Central Taxis

An analysis of cash management procedures and computer security in Central Taxis Limited with recommendations for improvement.
AAT no:  
Date: 01/06/2014
This report is submitted for assessment of Competence in the AAT Learning and assessment Area “Internal Control and Accounting Systems.

Contents       Page

1. Terms of reference 1
2. Executive summary 2
3. Methodology 3
4. Background 4
5. Analysis and evaluation of current systems 7
6. Recommendations 10
7. Cost Benefit Analysis 13
8. Appendix 1 15
9. Appendix 2           16
10. Appendix 3 17
11. Appendix 4 19
12. Appendix 5 20
13. Mapping Document 21
14. Letter of Authencity 23

1. Terms of Reference:

1.1 The following report was commissioned by Charlotte Street, Finance Director of Central Taxis. Ltd.

1.2 The report has been written to meet the requirements of the ICAS learning and assessment area of AAT level 4 Diploma in Accounting.

1.3 The objective of this report is to analyse the existing accounting system for cash management and computer security and to make recommendation for improvements.

2. Executive Summary

2.1 This report is based on the requirements within the business to improve cash management and computer security and to reduce the opportunities for fraud.

Findings (Summary of main weaknesses):

2.2 Findings of the report include weaknesses in the system relating to cash management, which can lead to potential theft and fraud in the company. Particular issues exist in the areas of fuel and repair costs, which are potentially decreasing the company’s revenue by 1-3% of the total cash income yearly (from £ 64,000 to £ 192,000).

Further issues have been identified relating to the single common unchanged computer password system for all users including accounts and management department as well as unrestricted access to all software,...