We are please to inform
you that we have completed the scrutinize of the account of the above company
for the period covering 6th July 2019 – 31st August 2019.
We hereby attached two
copy of this report for your perusal and comment. We shall embark on final
production of this account as soon as we received your comment on the issues
raised and approval. while this interim management account are for your
action’s, we wish to stress however that figure and material used for this work
are provided by the management and it is from this record provided that our observation
and recommendation are drawn. We have painstakingly carried our work in
accordance with the general acceptable financial standard on your books and
record, which were design primarily to enable us form independence opinion on
the books.
This interim report
therefore outline the weakness and the overview of your performance during the
reporting period which might have existed in the system of internal control and
accounting practice which our specific knowledge and training might have
uncover.
CONCLUSION
We wish to express our
profound appreciation to the management of the company for the opportunity;
patronization and confidence repost in our professional ability to do this job.
We also register our appreciation to the officers and staff of your company for
their cooperation which make our work successful.
Please note that this
is not a legal audit account but an appraisal of financial overview of the
company during the period
Thanks
Your faithfully
A
A Awokojo
Financial
and Human Consultant
OBSERVATION, IMPLICATION AND
RECOMMENDATION
1.
Statement of income and comprehensive
income
We found it difficult
to ascertained whether the company make profit or lost during the reporting
period because only the income statement was made available
IMPLICATION;
profit or lost cannot be ascertained which may threatened the continuity of the
business
RECOMMENDATION;
statement of income and expenditure must be make amendable always
2.
BOOK
OF ACCOUNT ; there is no proper record keeping
IMPLICATION;
this may make ascertainment of figure present difficult
RECOMMENDATION;
(A)
Proper book of account must be kept
(B)
Training in accounting practice be
organized for the accounting officers and salesmen.
BANKING
TRANSACTION
Revenue collected are
not banked as at when due, even when eventually banked it is not banked intact
as expenditure are sometimes met from the revenue.
IMPLICATION
This practice which is
usually refer to timing and lading in auditing language may lead to loss of
revenue if not checked.
RECOMMENDATION
a.
Revenue collected Must be banked daily
or every other day.
b.
Expenditure must not be made from
revenue
c.
An amount must be set aside as imperst
where small expenditure will be made with proper approval and monitoring.
d.
The cashier or the accountant must
indicate at the back of the teller the receipt No the teller represented and on
the receipt the teller No for easy cross checking.
e.
An officer must be designated to make
deposit as we notice that several person make cash deposit apart from customer
transfer.
INVOCING.
The invoicing system is very cumbersome as no proper record is available to
check whether all the goods invoiced out are paid for .
IMPLICATION
(A) it may bring
disagreement between the invoicing officer and the sales men.
(B) This may lead to
loss of revenue as all the cash may not be collected.
RECOMMENDATION
1.
Separate ledger sheet must be open for
the salesmen where goods invoiced to them will be recorded and payment made by
the sales men is recorded with the cash receipt . issued to them is indicated
2.
Cash receipt should be issued for the
payment receive from the sales men by the cashier the same day the money is
received to avoid disagreement which may lead to loss of revenue.
BANK
RECONCILATION
The bank is not reconciled at the end of every
month.
IMPLICATION
(A) This may lead to
loss of revenue as teller can be regenerated technologically nowadays and bring
as evidence of lodgment without any deposit being made to the bank.
(B) The bank cashier
may deliberately divert money which may not be noticed as a result of bank not
been reconciled.
RECOMMENDATION
1.
Bank statement must be obtained at least
twice in a month and reconciled accordingly .the management should work into
the following and make their opinion knows to us
The management to look
into the following and make their opinions known to us:
(a)
Receipt No 000344 for the sum of N14,000
was claimed to have been written twice by Mr Eniola Rasheed because it has been
included in receipt No 000346 which amount to N 56,800 =
Opinion
This explanation was not convincing enough as receipt No 000344 have been
written before 000346
(b)
Receipt
No 001060 for the sum of N28,975= was also claimed to have been
included in the receipt No 1119125 of 7/8/19.
Opinion
As above
(c)
Receipt No 000299; two different amount
was written on the same receipt i.e N 38200 and N 86350.
(d)
Receipt No 000347 two conflicting figure
were written i.e N80000 above and N10,000 down and in words
Opinion
This
look as a deliberate action to be defraud the company.
(e)
Receipt No 000348 N 24,000 up N
26,000 down
Opinion:
As above
(f)
Receipt No 000957 original N
16,000= duplicate N 60,000=
Opinion:
As above
RECOMMENDATION
(a)
The receipt issue must always be written
clearly with a good carbonize paper indicating the quantity, the unit price and
total amount.
(b)
The date of issuing receipts must follow
serially
SALES
ACCOUNT
The total sales during
the period between 6th of July 2019 – 23rd of August is
as follows with the invoicing No.
000301 -000307
64,000 =
000301-000315
66,000 =
000316-000333
954,500 =
000334-000350
726,500 =
000951-000974
555,750 =
000978-000979
81,000 =
000256-000296 1,119,116 =
000297-000300
167,953=
001051-001074
498,595 =
001076 21,200 =
TOTAL 4,254,616 =
BANKING
10/7/2019 – 31-7-2019 1,088,050
=
1/8/2019 – 22/8/2019 1,793,945
=
TOTAL 2,881,995 =
Less amount not related to this period 177,300
TOTAL 2,704,695 =
Add
deposit paid to director personal account now transfer
101,700 =
2,805,395
SUMMARY OF CASH AND BANKING TRANSACTION
BETWEEN 6/ 7/2019 – 22/7/2019
TOTAL CASH INVOICE 4254616
LESS BANKING DEPOSIT 2806395
CASH YET TO BE BANKED 1448221
CASH
SALES AND BANKING TRANSACTION 24/8/2019
– 31/8/19
R/NO AMOUNT
001076-001084 231,845
=
001087-001090
250,950 =
000975-000984
162,900 =
000982-000999
376,500 =
1,022,195
Less banking deposit:
Date teller
No Amount
26/8/19 94861409 72,000 =
26/8/19 94861487 10,000 =
27/8/19 949000920 18,500 =
27/8/19 949000880 41,400 =
28/8/19 94943740 29,400 =
28/8/19 94943805 53,000 =
29/8/19 94974844 86,085 =
29/8/19 94974521 52,300 =
30/8/19 95020784 66,000 =
30/8/19 95021020 48,140 =
476,825
Amount yet to be banked 545,370
STORE
ACTIVITIES
The physical stock taken of the store
was carried out on the 26/8/2019 and 31/8/2019 together with the store officer
and financial consultant as the observer. Please find below the quantities of
the goods in the store and their price.
STOCK
OUT BY EMIOLA RASHEED
Stock account 6/7/2019 26/7/2019
Opening stock 8,331,594 4,712,690=
Add new supply 677,000 1,027,150=
Goods available for sales 9,008,954 5,739,840
Less closing stock 4,712,690 4,560,745
Goods invoice out 4,296,264 1,179,095
STOCK
OUT BY AYANWALE IDRIS
Opening stock 2,879,313
Less closing stock 6/3/19 2,485,954
Goods invoice out
393,359
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