Alden Inc Accounting Information System

Alden, Inc. (Recommendations for Improving Internal Control) Weaknesses| Recommended Improvements| 1. blunt materials may be removed(p) from the storeroom upon oral license from one of the outturn foremen.| 1. Raw materials should be removed from the storeroom upon written authorization from an true outcome 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 figuring cannot be used to compensate because quantities on establish 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 levels, it may led to too gravid the demand in line of descent from the suppliers.| 2. A everlasting inventory system should be naturalized under the crack of someone other than the storekeepers.

The system should implicate quantities and values for apiece item of raw material. Total inventory value per the un metamorphoseing records should be compared with the general ledger at reasonable intervals. When personal counts are taken, they too should be compared to the thoroughgoing(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 materia ls.| 3.Raw materials are purchased at a pr! edetermined reorder level and in predetermined quantities. Since production levels may often vary during the year, quantities ordered may be either too littler or too great...If you requirement to get a proficient essay, order it on our website: OrderCustomPaper.com

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