Chic Paints Ltd

1   Terms of reference

1.1 The report has been written in order to cover the requirements of the AAT Level 4 Accounting Diploma Unit ‘Internal control and accounting systems’.
1.2 The report analyses and makes recommendations to help improve Chic Paints Ltd payroll and accounts payable system.
1.3 It also analyses Chic Paints Ltd commitment towards sustainability, professional ethics.
1.4 The overall aim is to analyse and advice Chic Paints Ltd in order to improve the accounting system which will lead to a better function of the company as a whole.

2                             Executive Summary

2.1 The main objective of this report was to identify the weaknesses within the payroll and the accounts payable system of CPL Company.
2.2 The report explores an in –depth understanding of the accounting practices and standards of CPL and also analyses the organisation`s internal control mechanism.
2.3 It also focuses on critically analysing and evaluating the current ethical practices in the organisation as well as identifying major issues in its accounting practices. In this regard, the report also ensures to recommend appropriate measures and practices to Chic Paints Limited for its sustainable accounting system and practices.

2.4 CPL has insufficient control checks which makes the company exposed to fraud. General security of data is very inefficient to almost inexistent which leads to breaches of professional ethics.
2.5 The company states to operate in a sustainable manner reducing the impact on the environment, however, there is no effort in achieving these goals.
  2.6 If the Company will implement the recommendations suggested within this report, CPL will operate in a more professional manner. A better accounting keeping, secured data, well trained staff and an excellent segregation of duties will reduce errors, will improve security and the company will   run at high standards showing credibility...