Chic Paints

Chic Paints Ltd (CPL)
Report to the directors

This report is to highlight the needs
for tighter controls over the payroll
procedures at Chic Paints Ltd to
reduce the risk of fraud.

This report has been produced by
(Accounting Systems Technician)

1 Table of contents
  1. Table of contents

  2. Terms of reference

  3. Executive summary

  4. Methodology

2 Terms of Reference

This report has been prepared to cover the requirements of the internal controls system unit of AAT level 4 ‘Diploma in Accounting’

This report outlines the need to tighten the controls over the Payroll system for Chic Paints Ltd (CPL)

3 Executive Summary

4 Methodology 4.7 | Review of the accounting proceduresAn outline of the Board and accounting personnel was provided along with a previous6 month diary of events within the company.
This was used as the starting point of the review.Appendix 1 SWOT analysis Using the findings of the SWOT analysis it was recommended that the payroll procedure needed tighter controls to deter the possibility of fraud.Other areas of the accounting procedure were found to need better internal controls, but were broken down into smaller problems to enable better recommendations.The areas within the payroll procedure that needed improvements were noted in more detail.With the results of the investigation and the notes taken on the improvements needed, it has been decided on actions to be taken to improve the controls in the payroll procedures. | |
5 Introduction | Chic Paints Ltd (CPL) is a paint distribution company specializing in paints used on boats cars and industrial machinery. The board is made up of 5 Directors each of which hold their own line management responsibilities, a breakdown of this can be seen in Appendix 2. CPL was formerly part of Ashstead plc but was subject to a management buyout six years ago by the 5 directors. At the time of the buyout the...