1 TERMS OF REFERENCE
1.1 This report has been prepared to cover the assessment requirements of AAT unit ‘Internal Controls and accounting systems’.
1.2 The aims of this report are to; •analyse the payroll system of Chic Paints Ltd so as to identify weaknesses and threats.
1.3 •to make recommendations for improving the system. 2 METHODOLOGY
• This report is based on an analysis of the accounting system of Chic Paints Limited which was a case study provided by AAT. Through the analysis weaknesses were identified and recommendations for the weaknesses have been made to improve the system. Most of the weaknesses identified are listed in the SWOT analysis.
• I was assisted by the United Kingdom Legislation through the website www.legislation.gov.uk.…show more content… They are responsible for making both long term and short term decisions that will benefit the company in the long run. •Accounts department- the accounts department also has an interest in the financial statements of CPL so that they can be able to prepare budgets for the upcoming financial year. •Employees –these are the key staff members at Chic Paints Limited, they are responsible for the day to day business interactions. It is very important for them to know the performance of the company so that they can check to see whether their jobs are secure or not. •Prospective investors –this include anyone who is looking into investing in Chic Paints through buying shares. It is key for them to know the company’s performance to be able to determine if they should invest or not. •Customers –even though CPL does not sell its products to the general public it does however have a wide customer base involving both UK and international clients. These include companies involved in the manufacture or repair of, cars and industrial equipment. •Suppliers –CPL operates with only around 30 regular suppliers on two to three year contracts, they use the financial statements as a guide to help them decide whether to allow CPL credit terms or