EXECUTIVE SUMMARY

Roden Construction Development Corporation is a wholesale and merchandise type of business that supplies ready-mix concrete to its customers. On the surface, this company may seem like it hasnt been entirely abiding with the standard procedures laid out by our book, Accounting Information Systems. Unlike in the book, the authorizations done by the company are mostly verbal instead of the mandated formal authorizations supported by documents. The company also doesnt keep ledgers and journals which makes some reconciliations and verifications impossible. With only five departments, Roden Construction Development Corporation clearly lacks some departments which the book has proven to be integral in a company. These are only some of the colossal factors that led us to the conclusion that the company isnt entirely keeping up with the standards In fact, about 70% of the companys operations dont coincide with those in the book. If we were to immediately give recommendations for the company, our recommendations would seemingly tantamount to changing almost everything regarding the way the company runs its revenue and expenditure cycle. But that is, however, if we purely stick with the book. However, despite the unbelievably huge differences between the ones set in the book and the actual operations in the company, Roden Construction Development Corporation is still standing for twenty four long years. This made us ask ourselves a big, Why? After a series of thorough analysis, we saw that despite deviating from the standards, the company has its own way of compensating for some of those weaknesses we detected. While the way the company keeps custody of its assets makes it easy for theft to occur due to lack of segregation of duties, the structure of the workplace somehow prevents this from happening because the manager is just less than four meters away from the cubicles the different departments are situated. Actually, the office is so small that almost everything the clerks in the departments do is transparent. The departments in the company consist of only one person. It may seem like there is a need to hire more people and assign more departments, but weighing the costs against the benefits, we realized that this is no longer necessary. Instead, what we did is worked with the existing resources the company has made sure that no control activities are violated. Here are our recommendations:

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