FSA A1 Group sua.doc

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FINANCIAL SYSTEMS AND AUDITING

ASSIGNMENT 1 December 13, 2010

Table of contents

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Introduction

AC Company operates in purchasing and selling processed fish and meet, and fresh

vegetables and fruits. There are three store of AC in Dong Da, Hai Ba Trung and HoanKiem

districts. Accounting system of AC includes cash ledger, creditor ledger, debtor ledger,

inventories ledger and others relevant ledger. Company applies straight line method to

calculate depreciation at 1! of total asset and "#"$ method to calculate cost of goods sold.

%rofit is calculated based on recorded revenue and record cost of goods sold. AC issued

provision policy &hich price of goods &ill be reduced &hen 'uality is degraded and generally

reduced &hen (ept more than three days.

%urchase is conducted by purchase department based on notice from stores. "oodstuff is

delivered from AC to stores and counted by transporter. Cash received from stores is collected

by AC cashier in the ne)t day &hile cash record is sent to AC accountant at the end of

&or(ing day. After that, AC accountant compare inventories sold &ith cash received by AC

cashier.

The report &ill provide the information about purpose and use of different accounting records,

importance of fundamental accounting concepts and ho& AC apply the. *oreover, it &ill givethe factors &hich influence the nature and structure of accounting systems. "inally, the report

sho& AC business and fraud &hich company might have and evaluated AC control systems in

order to suggest the suitable methods to detect and prevent business ris(s.

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A. Explain the purpose and use of different accounting records relates to

purchase and keeping inventories

All transactions done in business are recorded in the double boo((eeping &hich is considered

as an accounting method. #t is useful tool for all companies, not only small, medium but also

large companies. AC foodstuff trading company is not an e)ception.

The meaning of doubleentry must be understood first. #f there is any certain business

transaction bet&een AC company and a customer -*inh, for e)ample, it is recorded t&ice in

debit side and credit side &ithin the specific account relates to *inh. Debit side is on the left

and credit side is on the right. Due to the nature of the AC Company &hich operates in

purchasing and selling processed fish and meat, fresh vegetables and fruits, in order to record

their business transactions relates to purchase and (eeping inventories, different accounting

records need applying are purchase day boo(, purchase /ournal, purchase ledger, inventories

ledgers, inventories subsidiary ledgers. 0ach of these boo(s has different uses and purposes

&hich &ill be presented belo&.

1. Purchase day book and Purchase Journal

%urchase day boo( is used for recording daily purchase orders on credit of fish, meat,

vegetables, fruits of AC company and the purchase invoices &ith those food received to

compare &hether it match to each other. Besides, the net amount of each invoice is calculated

and recorded in the purchase day boo( &ith specific headers. Theirs total sum &ill be posted

to the purchase ledger &ee(ly. #f there is any transaction &hich is nonroutine in nature such

as purchase of fi)ed assets or correction of errors, it records in purchase /ournal &hich is one

of the important boo(s for AC company. Because errors may affect to the business of the

company, recording in purchase /ournal helps cler( have clear vie& about &here the errors

and minimie ris(s. Also, recording errors in different boo( li(e purchase /ournal, not in

purchase day boo( helps the boo( clearer and more convenient for AC cler(s to chec( it.

2. Purchase edger

%urchase ledger is used to record all the information from purchase invoice and credit notes

&hich received by accounts department from suppliers. The purchase ledger cler(s &ill match

the purchase invoices, credit notes &ith relevant received notes -234 &hich are re'uired to

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see before paying suppliers6 invoice. 234 is used to record a receipt of goods, store staff

chec(s it in terms of 'uality and 'uantity of meat, fish, vegetables. #n addition, purchase

ledger is to compare &ith the suppliers6 statements are received in order to ensure the balance

of debit and credit. Also, the balances of purchase ledger are computed and produced by the

AC cler( monthly.

!. Inventories edger and Inventories "ubsidiary edger

AC inventories ledger is used to record all four types of inventories such as processed fish,

processed meat, vegetables, and fruits &hich means those inventories are recorded in one

boo(, called inventories ledger. #n order to control each type of inventory better, the inventory

subsidiary ledger is used &hich means each type of product is recorded in each inventory

subsidiary ledger7 fish is recorded in fish inventory subsidiary ledger, processed meat is

recorded in processed meat inventory subsidiary ledger, vegetables is recorded in vegetables

inventory subsidiary ledger, and fruits is recorded in fruits inventory subsidiary ledger. The

number of fish, meat, vegetables, and fruits received by suppliers and deliver to AC1, AC+,

and AC5 are recorded in detail.

At the end of the day, the inventories are chec( to compare the in and out of products. The

fish, meat, vegetables, fruits inventory subsidiary ledger are recorded in AC inventories ledger

&ee(ly or monthly. By this &ay, it is convenient for AC store(eeper to chec( the information

of AC inventories to control, and &hen need to inform and re'uire the purchasing department

to purchase more foodstuffs in order to supply three stores in time and avoid delaying delivery

products or products shortage for three stores to serve customers best and it also minimie the

bad effects for AC company as a &hole. According to the case, 8processed foodstuff &hich

approaches their e)pired dates and fresh vegetables and groceries &hich have been (ept more

than 5 days are sub/ected to be reduced in their prices.9 Thus, it is important to chec(

inventories of foodstuff to ensure the e)piry date of products, and then AC can sell them first

in order to avoid the out of date. 0specially AC cler(s should follo&s vegetables and fruits

inventory subsidiary ledger to chec( the time received from suppliers to sell them to avoid

over5day products &hich lead to the reduction in prices, thus affect to the revenue of the

company.

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;nderstanding the purpose and use of different accounting records for AC company as

e)plained above, AC managers and cler(s can control the purchasing and inventories of AC

&ell. Besides, the fundamental accounting concepts of AC company is one of the important

factors &ill be presented in the ne)t part.

#. The $eaning and the i$portance of the funda$ental accounting

concepts of A% %o$pany

Accounting standards, called "3


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#n the case of AC Company, there is one obvious evidence that can sho& the company has

used 2oing concern concept in accounting &or(s. This is AC Company applies the straight

line method to calculate depreciation. The depreciation rate is 1! for all fi)ed assets. The

yearly reduction in the cost of the asset is called depreciation. As the asset has an estimated

useful life, it is normal to gradually &rite off the cost of the asset over the time of its useful

life. This helps to ensure that as the asset physically or operationally deteriorates, its cost in

the accounting records is also reduced to reflect the physical or operational deterioration.

;sing going concern concept, AC implies that it &ill continue its operations and so the assets

&ill live out their full years in use. #n this case, a depreciation charge at the rate of 1! &ill

be made each year, and the value of the assets &ill be reduced each year by the amount of

yearly depreciation. According to this, AC Company intends to run the business in the

foreseeable future surely.

2. Accruals or $atching'

8The accruals concept states that in computing profit, revenue earned must be matched

against the e)penditure incurred in earning it.9

This concept is very important in operations of any companies, especially in accounting

&or(s. The errors or differences in record and calculation &ill lead to incorrect results and

then, the items in the balance sheet cannot be valued. 0specially, AC Company has three

stores, the records of revenue and e)penses must be matched highly.

Concretely, in the AC Company6s situation, profit is calculated based on recorded revenue

and recorded cost of goods sold. 3evenue is recorded &hen money is received. Together &ith

recording revenue from a sale, AC6s accountant calculates and records cost of goods sold

based on "#"$ -first in first out method. #t means that cost of goods sold is only calculated

&hen revenue from a sale is recorded. This &ill ensure the relevance bet&een revenue earned

and cost incurred.

!. %onsistency'

The consistency concept states that in preparing accounts consistency should be observed in

t&o respects7 -a similar items &ithin a single set of accounts should be given similar

accounting treatment? -b the same treatment should be applied from one period to another in

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accounting for similar items. This enables valid comparisons to be made from one period to

the ne)t.

The consistency concept helps the company operate uniformly. Hence, accounting &or(s canbe implemented and monitored easily. This facilitates for high accuracy and efficiency of

accounting system.


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%. The factors )hich influence the nature and structure of accounting

syste$s of A%

1. #usiness si*e and structure'

AC foodstuff trading company operates in purchasing and selling processed fish, meat, fresh

vegetables and fruits. The company has 5 stores in Dong Da, Hai Ba Trung and HoanKiem

Districts.#t can be considered as a small enterprise. ith this sie, there &on6t be a huge

number of transactions every day. The nature and structure of the accounting system doesn6t

have to be very comple). Thus, it &ill be easily conducted and managed by the company6s

accounting department.

#n term of business6s structure, AC Company has a very clear structure and is departed by

functions. There are three departments in the company7 %urchasing department -in charge of

conducting every purchases base on plan and notices from company6s stores, Accounting

department -in charge of financial stuffs and Delivering department -responsible for

delivering goods to stores and to customers. ith this clear and specialied structure, each

department in the company can concentrate in their tas( to achieve the best result. #t also

brings the company many advantages in conducting and managing its accounting system."irst of all, it is very easy for the Accounting department to collect data about company6s

purchases because there is a %urchasing department &ho conduct all the purchases.


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depended on the accounting department. #f the accounting department does their &or( &ell,

the accounting system &ill provide accurate output and vice versa.

2. %o$pany+s financial policies

The financial policies that decided by the management also influence the accounting system

of AC Company in many &ays. "irstly, purchases are fist recorded in %urchase Eournal then

recorded in #nventories Fedgers and #nventories


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,. Identify the co$ponents of business risks

There are three types of business ris(s &hich every company might meet, i.e. operational ris(,

financial ris( and compliance ris(.

1. -perating risk

$perating ris( can be defined as the chances of errors or mista(es being made &ithin the

operations of the business. The first ris( occurs for AC companyis that suppliers sometimes

cannot deliver goods to AC &hen the company needs. There is no authority is re'uired for the

inventory re'uisition. The re'uisition might not be ade'uate.


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directly ma(e the accidences, the drivers might be sued, it influences on AC company6s

prestige, not only the drivers but also the company have to compensate for the accident the

made. #n addition, if there is a case that the drivers violate the traffic la&, drivers &ill be fined

for money. #t seems that it does not affect to the revenue of the company because drivers are

the one &ho bear the money fined. 4evertheless, that violation may lead to the late

transportation to AC &arehouses that might affect to the goods 'uality, and the late deliveries

to three AC stores.

Fast but not least, there is another operating ris( raised from AC &arehouses is that fire. #f fire

occurs unfortunately in the company, it &ill lead not only foodstuff but also the &arehouses

are destroyed. Thus, this affect directly to the revenue of the company.

The control of operating ris(s should be considered carefully in AC company to minimie

those ris(s presented above. The AC store(eeper should pay attention more about the

inventories, chec( &hich products need to sell first to avoid the reduction in price and spoiled

products. Besides, for the distribution process, the company should buy insurance for cars,

vans, and drivers to minimie ris(s. #t is necessary for the company to issue strict policies and

raise a&areness of AC transporters to prevent the carelessness of drivers. #n addition, AC

should e'uip more fire prevention systems, train employees ho& to deal &ith them in

emergency situations. #t is decisive factor for the company to minimie ris(s from fire and

protect &arehouses and goods better.

2. inancial risk

Due to the chance of collusion bet&een accountant and supplier of utilities, the ris(s of

incorrect utilities payment might occur. Besides, money form store does not be collected in

time? it is used for personal purposes, or at &orst, the money is misappropriated. Besides, &ith

fresh food and vegetables, the using date is short, especially for vegetables and fruits &hich

may be spoiled 'uic(ly after fe& days. Therefore, if the company can not sell them 'uic(ly or

out of date, it might be unused &hich affect to the profit of the company.

Besides, &hen the company &ants to e)pand business, need more capital to run business, or in

any time the company has to loan money from ban(s, the ris( of the company might meet

based on the interest rate. hen loaning from ban(s, AC has to pay interests. AC is the

purchasing and selling foodstuff trading company &hich is a medium enterprise. The current

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rate for


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To control the business ris(, it should (no& ho& accounting and internal control systems are.

There are four techni'ues to record accounting and internal control systems7 narrative note,

flo&charts, 'uestionnaires and chec(lists.

#n AC company case, &e use flo&chart and narrative notes to describe the internal control

system of organiation as follo&ing.

There are three main transactions in Ac performance7 purchasing goods and selling goods.

Purchasing and pay$ent process

Purchase goods

There are three stores in AC Company called AC1, AC+ and AC5. Base on the notice of those

stores, they &ill give re'uisition to AC purchase department. hen the re'uisition is made,

there have been many ris(s occurred such as goods for personal use, raising &rong order,

incorrect in amount of goods or lo& 'uality. Thus, before re'uisition come to purchase

department, it should be chee(ed and signer by stores manager or someone else. Then,

purchase department &ill conduct the purchase process &ith supplier. %urchase order is

prepared, given to supplier and filed. hen goods arrive, 'uantity and 'uality is chec(ed

against the purchase order directly by purchase department. %urchase department &ill receive

and record those. 2oods received note is raised and filed. Because it is credit selling, purchase

is recorded in purchase /ournal and then inventories ledger. There is no segregation of duties

in purchasing products. All activities are conducted by purchase department. #t is a mista(e in

internal control system. %urchase department might collude &ith suppliers about 'uality and

'uantity of goods. 2oods received may be &rong about items, amount and 'uality? goods can

be damaged during delivering. There should be goods in&ards chec(ing goods before they

come to &arehouse in order to approve the transaction. All documents related to receiving

goods must be chec( and compare &ith the purchase orders and re'uisitions by goods

in&ards.

Payment of utilities

Accountant &ill received utilities invoice directly from supplier and pay the cash. #t is no

doubts that internal control system here is too &ea(. Accountant carries out all the utilities

payment and record. There is no segregation of duties. Accountant may collude &ith utilities

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suppliers to overcharge on purchase invoices and gain some e)tra money. ;tilities should be

approved and recorded by accountant and then give to AC cahier to pay the invoices.

"elling and $oney receipt process

0very >a.m goods &ill be transported to three stores &ith re'uired 'uantity. AC &arehouse

&ill prepare the order from three AC stores. AC &arehouse records inventory in stoc( issued

doc(et and give one to transporter. hen goods arrive to three stores, they &ill be recorded in

bill of lading by transporter. $ne bill of lading is given to accountant and another is field. The

sales and cash receipts are recorded in bill by AC1, AC+ and AC5 cashiers. After that, bill is

sent to accountant in the same day. Ho&ever, cash is collected by Ac cashier and recorded in

receipt slip in the ne)t day. The cash control system of AC Company is &ea(. Cashier from

stores might use received cash form customer for personal purpose until ne)t day. Ac cashier

should collect the money at the same time &hen stores send the record to AC accountant.

"inally, AC accountant compares inventories sold in bill of lading &ith cash received by AC

cashier? it means company has compared the results of cash and stoc( counts &ith accounting

records. Control procedure in this part of AC is 'uite tight.

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FINANCIAL SYSTEMS AND AUDITING ASSIGNMENT 1 December 13, 2010

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AC company_ purchase system_ ordering and receiving goodsStores AC Purchase department (AC arehouse! Accountant

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FINANCIAL SYSTEMS AND AUDITING ASSIGNMENT 1 Dec

. The risk of fraud )ithin A% %o$pany and $ethods for prevention and

detection of fraud

1. /isk of fraud )ithin A% co$pany

"raud is intentional act that serve benefits of the conductor &ith preparation in advance, thusit is difficult to find out. ;nderstanding types of frauds possibly occur? the company may

detect and prevent the frauds. There are some possible frauds that AC company can be

committed, i.e. asset misappropriation, collusion &ith e)ternal parties, teaming and lading,

altering che'ues and inflating e)pense claim, and stealing unclaimed &ages

Asset misappropriation

The first possible fraud is asset misappropriations &hich are company vehicles and

inventories. "or instance, AC vehicles -AC company6s cars, vans, &hich are means for

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transporting goods from suppliers to three AC stores, can be used for private purposes

&ithout permission for private uses or leasing cars for other to embele money.

Besides, AC transporter can misappropriate fuel for running vehicles by reporting the &rong

information about fuel consumption, or consuming less fuel than e)pected but heIshe does

not pay bac( the remaining amount to manager in order to misappropriate the money

e)ceeded as follo&7

0oney appropriation Provided a$ount Actual using

"or e)ample, A, a AC transporter &as provided >,,4DImonth for fuel running but he

only used :,,4D and did not report to the director and the rest of money

-1,,4D goes into his poc(et. Another e)ample is that A &as not provided fuel fees

in advance but paid based on his reporting or the (ilometers driving. The number of

(ilometers driven is difficult to chec( because there are many une)pected factors lead to the

increasing in (ilometers, i.e. traffic /am, generated /ourneys, etc. #n order to avoid the

detection of AC managers, transporters may collude to each other to do fraud.

"urthermore, AC issued provision policy &hich allo&s reducing the historical values of

inventories if the 'uality is verified to be degraded that is 8processed foodstuff &hich

approaches their e)pired dates and fresh vegetables and groceries &hich have been (ept more

than 5 days are sub/ected to be reduced in their prices.9 egetables, meat, and fishes are

considered as AC assets. Based on this, AC employees may misappropriate those assets by

change e)pired dates of vegetables and groceries. #t means that &ith vegetables and groceries

&hich are over 5 days are still informed that they are still fresh -less than 5 days. By doing

so, employees can get the misappropriation money by subtracted from less than 5 dayfood

price and over 5 dayfoodprice as the follo&ing formula7

"or instance, AC apple price of over 5 days is 5@,4DI(g &hich is less than apple price

of less than 5 days &hich has :,4DI(g. By informing those apples are ne& apples

&hich are less than 5 days, AC employees misappropriate :,4DI(gJ -:, 5@,

4ot only asset misappropriation, there is other fraud is collusion &ith e)ternal parties.

1

0oney $isappropriation ess than ! dayfoodprice -ver ! dayfood price


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Collusion with external parties

This factor is one of the important factors affect to AC revenue. #t can be occurred in all

departments. AC employees may sha(e hands &ith AC6s competitors to sell or reveal secrete

information relates to AC6s business that may affect to the business or prestige of the

company based on the importance of the information revealed. 0specially, the collusion &ith

e)ternal parties is easy to occur in AC purchasing department. The e)ternal parties in this

case are suppliers. 0mployees and suppliers are arranged to each other to increase the price of

foodstuff or machineries, and AC has to pay more for suppliers. An employee &ho has

arrangement &ith suppliers is got commission from this. "or e)ample, B &ho responsible for

purchasing pomelo from supplier C, because there is scarcity of pomelo in this case and AC

has to buy from supplier C. C arranged &ith B in advance to higher the pomelo price and AC

has to accept on that price. B can receive +! from the e)ceeded price from actual price and

arranged price as the formula belo&7

"or e)ample, the actual price selling for AC is +>,4DI(g. After arrangement, the priceis increase to +,4DI(g. B only increases +,4DI(g to avoid AC6s suspect. The

e)ceeded price in this case is +,4DI(g. B received +! commission from +,4D that

means +4DI(g from suppliers. +4DI(g seems to be a small amount but AC tends to

purchase in bul(, thus the more AC purchased, the more B can received from the price

arrangement.

#n addition, B also can collude &ith C in another e)ample. B can base on his close

relationship &ith C to overcharge the purchase invoices delivered to AC company. "or

e)ample, AC purchased (g pomelo &ith +>,4DI(g that means 1,>,4D

-J ) +>, in total. B arranged &ith C to change the invoice delivered from

1,>,4D to 1,>,4D for (g. #t means that B corrupts 1,,4D

from purchasing (g.

Teaming and lading

Teaming and lading is other fraud can be committed &ithin AC. #n this case, AC cashier is

the one &ho collects cash from AC1, AC+, AC5 cashiers, has the high opportunities to

1G

%o$$ission 23 exceeded price 23 4Actual price Arranged price5


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commit fraud. HeIshe can ta(e the money received for private use such as lending &ith high

interest, storing in ban( for interest in short term and then pay the money bac( for the

company after a short time. By doing so, the cashier can get the interest from lending or ban(.

Cler( can also e)ploit directors6 signature to issue che'ues for his purpose uses. Although the

money got out &ill be paybac( for the company, especially before audit performed, the

director still does not (no& anything about the cler(6s fraud. The teaming and lading can be

occurred in AC1, AC+, and AC5 cashiers if those cashiers lend money for really a short time,

bet&een pm of the previous day to Gam of the ne)t day because on the ne)t day -about

Gam, cash at 5 stores &ill be collected by AC cashier. Ho&ever, if there is collusion bet&een

AC cashier and one of the 5 stores cashiers, teaming and lading is easy to occur. They can

ta(e money for their private uses although they &ill pay the money bac(.

Altering cheques and inflating expense claim

"urthermore, in some case director issue che'ues &ith his signatures, and cler( is the one

&ho (eep those che'ues. Therefore, heIshe has high chances to change the amount of money

on the che'ues to put the e)ceeded amount in his poc(et. #n addition, on purchase ledger

balance and suppliers6 statement, cler( can add up certain number to ma(e it balance in order

to increase the payment re'uired for the company. Thus, the cler( can earn benefit from this.

Stealing unclaimed wages

The last fraud may occur in AC is the opportunity of steal unclaimed &ages. #t happens &hen

there is an employee in AC as a &hole, including AC1, AC+, and AC5 is fired or give up the

&or(. 4ormally, the employee -, for e)ample is paid &ages based on the &or(ing time, or

the company compensates him. Ho&ever, is not informed about this -or in some caseemployees forget to ta(e the &ages, plus, AC accountant -L, for e)ample does not inform

him and does not report to the director. As a result, L can get 6s &age and pretend that

received the &ages already.

Those are some possible frauds &ithin AC that the company have to pay attention. #n order to

prevent and detect frauds, there are some possible methods &hich are presented in the ne)t part.

2. 0ethods for prevention and detection of fraud

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#n order to prevent frauds for AC in the future, the important thing is that the company has to

improve the internal control system. There should not only store staff chec( inventories, it

should have e)perienced and s(illed supervisors to chec( to inventories after the store staff

inform the status of inventories, i.e. chec( the 'uality of products, &eigh them randomly

-because it is not enough time to &eigh all goods reduce the chances of stealing foodstuff for

private use or &rong purposes. #n addition, the director has to pay attention and read carefully

before signing &hich cler( gave him, chec( the che'ues issued to reduce the teaming and

lading and altering che'ues and inflating e)pense claim by the cler(. Additionally, director

should inform fired or given up &or( employees to get &ages before leaving in order to

reduce the chance for AC accountant to steal unclaimed &ages.

"urthermore, the company should pay attention to recruitment. AC ne& employees should

not be recruited based on only s(ills, e)periences but also honest, trust, and loyalty. By doing

so, fraud can be prevented at the early stage. Ho&ever, &ith the recruiting ne& employees

&ith those factors above, AC &ill not succeed if the company concern to their e)isting

employees, gain more loyal employees. hen have more and more loyal employees, frauds

in AC &ill be reduced and the company can also save cost for recruiting and training ne&

employees. #n order to achieve this, the company should issue some policies or sho&

concerns and respect to AC employees by some motivations, e.g. re&ard for employees, givethem bonus if they have good performance in &or(ing or &hen the company achieve the

targeted sales, celebrate company annual parties, give holiday vacations for AC employees as

a &hole, including three stores of AC7 AC1, AC+, and AC5 can rela) before going to &or(,

can understand to each other more to corporate better. ith the respects and concerns, a&ards

and bonus, AC employees &ill have no intention to commit fraud. Directors can sho&

concern to their employees by as(ing them about their family, their situation, standard of

living, and so on. This is not only a concerning behavior but also considered as one of the

good &ays to prevent frauds by understanding employees6 standard living, situation, or

behavior. Based on the changing of employees6 life style, e.g. e)pense more for their daily

life through clothes, accessories, shoes, bags, etc. &ith unusual behavior, &hich helps

directors to consider and determine better &hether there is any employee ma(e fraud or not.

Besides gain loyal employees, AC should build close relationship &ith suppliers in terms of

meat, fishes, vegetables and fruits by issuing some policies, also give them incentives, i.e.

give them the higher price than other competitors, responsible for transportation fees, share

some parts of AC6s plan, invite e)pert to instruct them more ho& to improve 'uality and

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'uantity of output, etc. By doing so, the company can gain both loyal suppliers and

employees. Thus, collusion bet&een e)ternal parties &ill be reduced.

Fast but not least, along &ith motivation as # presented above, it is suggested that strict

regulations on employees should provided if AC employees commit fraud based on the level

of the commitment, i.e. punishment -cut bonus, a&ard or minus on salary, direct fire, or even

at &orst, call police and sue them.

# e)pect that &ith some fraud ris(s identified and methods to prevent and detect them, AC

company can run business better.

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%onclusion

#n conclusion, this report presents the purpose and use of different accounting records relates

to purchasing and inventories. Also, the importance and meaning of the fundamental

accounting concepts is e)plained details in part + of this report. #n addition, factors &hich

influence the nature and structure of accounting system for AC Company along &ith the

analysis of management control systems in business ris(s are also assessed in this report. Fast

but not least, the ris(s of fraud &ithin AC Company are also mentioned in the last part of this

report. Besides, some suggest methods for prevention and detection fraud are also presented

in order to help AC company to improve the business performance. # e)pect that this report

&ill be helpful for AC Company in running business and management control systems of the

company.

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/eferences

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Documents

FSA A1 Group sua.doc