Part 3: Report

Part A

To complete this part of the assessment, you are required to read the scenario below and prepare a report for Max Begg. 

Scenario - Raincoat Repair Pty Ltd is a roofing repair company that has been operating in the Coffs Harbour area for the last 15 years.  As part of its business processes, it invoices all customers once the job is completed rather than collecting cash.

Sue Laws, who is the accountant, opens all the inward mail on a daily basis.  She does this in order to respond to customers’ needs quickly and any other queries or customer problems.  When she opens the mail, all correspondence is handed over to the owner, but all cash remittances are listed by her immediately.  She deposits all cash listed promptly and then uses the listing to prepare the cash receipts journal and update the accounts receivables.

Sue Laws’ duties also include approving credit limits, authorising allowances, bad debt write-offs and preparing the monthly Profit and Loss Statements.  The owner, Max Begg, is very happy with her work, however he has noticed over the last 6 months that it was taking longer each month before he received the reports.  As a result, he sought clarification on the application of corporate governance requirements and contracted a local accounting firm to perform an internal investigation which discovered that Sue Laws had committed a series of major thefts of the company’s cash collections.  She did not record some sales, and authorised fictitious credits to customers. 

TASK 1

Using the template provided below as a guide, write a report. The report is to be written as a separate word document and saved with the file name ‘FNSACC516_REPORT_YOURNAME’

The report must include:

• A title page

• Executive summary

• Identification and explanation of the issues

• Recommendations

• Conclusion

• List of references consulted 

The report should cover these points:

• Identify industry standard practices for corporate governance and internal control that would be relevant to this business

• Identify the weaknesses in the current procedures

• Develop recommendations of how you would apply these industry standard practices to improve Raincoat Repair Pty Ltd’s internal control and governance procedures.

• There should be at least 1 recommended improvement for each weakness

TASK 2

Attach the word file containing your report to an email and send this email to your assessor. Make this email a business style email, using language that you would expect to see on a business email. Emails that are not professional will not be marked. Don’t forget to attach the word document to the email.