Advance Auditing

Name: Samsam Rauf

M.COM (M)
Semester: 4th
Roll No: MCMM-18-28

Weakness in Present Accounting System

1. All the duties performing by single Person Miss Jones
Where is the act of Mrs. Singh except receiving cheques deposit in
the Bank? (Duties are not effectively segregated)
2. Is there no chance or way that Customer place order by itself?
3. Lack of latest accounting software, it takes time that first you
record in sales day book and then put into sales ledger on weekly
basis, here is a chance of missing or omission in recording the
transactions.
4. Poor Policies
5. In warehouse there must be a computerized system which is
connected with the Office, it will easy to tell them to make ready
an order instead of passing the order copy.
6. Filing space issue: In present world where Space issue is not
means, there is an issue to the company that it couldn’t files the
dispatched notes which is an evidence when audit will conduct
7. Mrs. Singh Works Part time, it means she cannot pay her heed to
the work properly, that’s why I think when she opens cheques
present day then why banked it next day? Isn’t it laziness??
8. Why sales ledger Printed on annually basis?
 It must be printed on monthly or Interval basis.
Isn’t it effect on accounting system, if cheques will dishonor on
day of deposit, it will not take time to inform the customer??
9. Lack of internal control, why Director not asking for report on how
is going the work?
Why balancing of records/ Transaction at end of a month?
Is 90 days are not too long for asking about the payments which
were not paid by the customer. It will leads to increase the
number of bed debt. Mostly %/10 and n/30 rules are adopted by
the companies.
10. Miss Johns records the transaction by name of Customer, if
one of the customer not Placing the order for long time, it will be
shown every time and create hurdles for finding the records.
11. If the company have a facility to produce sales day book and
Sales ledger to control accounts then why miss johns not using?
Weather it is limited number of transactions, if that facility make
work efficient then it should be use.
12. Necessary Copy/files/transactions not printed out.

Suggestions
1. There must be segregation of duties according to person’s Skills.
2. Laziness must be Stop otherwise it will be effect on auditor’s
report
3. Latest accounting software must be installed in the computers.
4. Check the Transactions record daily or there must in three days
5. Information must be available at every time till Current time for
the managers and Directors.
6. Bear some cost on marketing aspects, proper advertise your
product, and make available information regarding the product
for the customer.
In Simple, Research and developments are needed some
improvements.
7. Internal audit must be conducted within 6 months.
8. Make available the clearance of records as evidence possible for
the Auditor.
9. Accounting standards must be followed properly.
10. Latest computer which will not create space issue must be
installed in the companies for proper account control.
11. A head of account control must be appointed by the
managers/Directors to check the account and its control and
Make Clear there is no chance of Fraud and error.