Alden Inc Accounting Information System

Alden, Inc. (Recommendations for Improving Internal Control) Weaknesses| Recommended Improvements| 1. blunt materials whitethorn be removed(p) from the stowage upon oral license from one of the outturn foremen.| 1. Raw materials should be removed from the storeroom upon written authorization from an true bribe 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 take cannot be used to compensate because quantities on paw may not be sufficient amidst two counts. If the storeroom supervisor enters the part number of variableness between the quantities on hand and the predetermined reorder aims, it may led to too man-sized the demand in line of descent from the suppliers.| 2. A co nstant inventory system should be naturalized under the bear of someone other than the storekeepers.

The system should implicate quantities and values for to each one item of raw material. Total inventory value per the staring(a) records should be compared with the general ledger at reasonable intervals. When fleshly counts are taken, they too should be compared to the staring(a) 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 everywhere obsolescence of stored materials.| 3.Raw mat erials are purchased at a predetermined reor! der level and in predetermined quantities. Since production levels may often transform during the year, quantities ordered may be either too delicate or too great...If you requirement to get a copious essay, order it on our website: OrderCustomPaper.com

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