Alden Inc Accounting Information System

Alden, Inc. (Recommendations for Improving Internal Control) Weaknesses| Recommended Improvements| 1. blunt materials may be removed(p) from the stowing upon oral license from one of the outturn foremen.| 1. Raw materials should be removed from the storeroom upon written authorization from an true make up foreman. It enables individuals to verify the accuracy of recorded these transactions. In addition, the authorization forms should be numbered initially and list quantities and job or production number, and be signed and dated.| 2.Lack of a lasting armoury system and no records for goods received or issued. A forcible list numbering cannot be used to compensate because quantities on slip by may not be sufficient amidst two counts. If the storeroom supervisor enters the part number of variableness between the quantities on hand and the predetermined reorder aims, it may led to too plumping the demand in line of descent from the suppliers.| 2. A continual inventory system should be naturalized under the controller of someone other than the storekeepers.

The system should implicate quantities and values for all(prenominal) item of raw material. Total inventory value per the unremitting records should be compared with the general ledger at reasonable intervals. When natural counts are taken, they too should be compared to the sodding(a) records. Where differences occur, they should be investigated, and if the perpetual records are in error, they should be adjusted. Also, controls should be established oer obsolescence of stored materials.| 3. Raw materials are purchased at a predetermin! ed reorder level and in predetermined quantities. Since production levels may often divert during the year, quantities ordered may be either too refined or too great...If you requirement to get a right essay, order it on our website: OrderCustomPaper.com

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