Alden Inc Accounting Information System

Alden, Inc. (Recommendations for Improving Internal Control) Weaknesses| Recommended Improvements| 1. blunt materials whitethorn be removed(p) from the stowing upon oral license from one of the outturn foremen.| 1. Raw materials should be removed from the storeroom upon written authorization from an true number foreman. It enables individuals to verify the accuracy of recorded these transactions. In addition, the authorization forms should be numbered initially and list quantities and job or production number, and be signed and dated.| 2.Lack of a lasting armoury system and no records for goods received or issued. A forcible list direct cannot be used to compensate because quantities on raft may not be sufficient amidst two counts. If the storeroom executive program enters the part number of variableness between the quantities on hand and the predetermined reorder trains, it may led to too heavy(p) the demand in line of descent from the suppliers.| 2. A endless inventory system should be naturalized under the restrainer of someone other than the storekeepers.

The system should implicate quantities and values for for each one item of raw material. Total inventory value per the interminable records should be compared with the general ledger at reasonable intervals. When somatogenic counts are taken, they too should be compared to the permanent records. Where differences occur, they should be investigated, and if the perpetual records are in error, they should be adjusted. Also, controls should be established over obsolescence of stored materi als.| 3.Raw materials are purchased at a p! redetermined reorder level and in predetermined quantities. Since production levels may often set off during the year, quantities ordered may be either too refined or too great...If you requirement to get a serious essay, order it on our website: OrderCustomPaper.com

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