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 founder 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 study cannot be used to compensate because quantities on establish may not be sufficient amidst two counts. If the storeroom supervisory program enters the part number of variableness between the quantities on hand and the predetermined reorder aims, it may led to too cock-a-hoop the demand in line of descent from the suppliers.| 2. A ageless inventory system should be naturalized under the train of someone other than the storekeepers.
The system should implicate quantities and values for for each one item of raw material. Total inventory value per the stark(a) records should be compared with the general ledger at reasonable intervals. When corporeal counts are taken, they too should be compared to the eternal 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 everywhere obsolescence of stored materials.| 3.Raw ma terials are purchased at a predetermined reo! rder level and in predetermined quantities. Since production levels may often start out during the year, quantities ordered may be either too littler or too great...If you requirement to get a panoptic essay, order it on our website:
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