Introduction to Chic Paints

A testimony investigating the Internal Control in position and assessing the Account System of Chic Paints Limited (CPL)
Student Name: Basupi Tapela
AAT Registration Number: 20008823
I testify that the following report is my own unaided work and a true reflection of the organisation.

  1. Terms Of Reference
1.1. This testimony investigates the accounting system in position in boundaries of Chic Paints Limited (CPL) in line with making recommendations for improvements in the system and the controls and to save the system’s exposure to fraud.
1.2. Working hand in hand with the investigation of the system, this testimony also gazes at the organisation in general, and the information the organisation needs from the system.
1.3. The report also evaluates the endorsements made in terms of their costs and benefits, and scrutinizes the possible for fraud as a risk to the organisation.
1.4. The testimony has been prepared to cover the requirements of the Internal Controls and Evaluating Accounting System Paper that is part of the AAT Level 4 Diploma in Accounting.

4.1. Chic Paints Limited is a company that specialize in paints such as those of cars, boats and industrial machinery. It also aims to produce allied products that are expertly formulated to meet the highest international standards. Furthermore they operate their business in a sustainable manner; reducing impact on the environment wherever possible. It is owned by five directors Greg Pearce, Dave Whistler and Susan Mather then later on in July they introduced two other members on the board who are Colin Addison and Zhang Wei. The last two members had bought shares from two retired member, Ruth Jones and Ahmed Khan. They were replacing them as executive functional directors. The company employed 350 employees which has reduced the workforce.
4.2. Chic Paints was formerly part of Ashstead Plc., but was the subject of a management buyout (MBO) from its previous owners...