Writing an internal auditor’s report on procedures and internal controls in a public company involves assessing the effectiveness of the company’s internal controls and providing recommendations for improvement.
Here’s a guide on how you might structure such a report:
This is for Accounting Grade 12 subject. The Grade 12 Internal auditor’s report on procedures and internal controls in a public company Guide study content will help you with your Accounting Subject Revisions, Tests, Exams, and Assignments.
You have been appointed as the internal auditor of Exotic Clothing Ltd, a new public company which is about to be established. All stock will be bought on credit. They will sell for cash and they will allow customers to buy on credit. It is expected that there will be approximately 1 000 shareholders. The CEO has asked you to prepare a report on certain procedures that should be put in place in the company.
The company currently has four employees in the Accounting department. The CEO is thinking of appointing Tom to manage fixed assets, Maisy to control trading stock, Bheki to control debtors (accounts receivable) and Shamila to control cash resources.
Your report should include the following
- Procedures to establish the company
- The records that should be kept on each shareholder, together with the reasons why these are necessary
- The procedures that should be put in place to ensure that good internal control is exercised over:
• Fixed assets
• Trading stock
• Accounts receivable (debtors)
• Cash collected