Internal controls and weaknesses report Essay Example | Topics and Well Written Essays - 1250 words

Internal controls and weaknesses report - Essay Example The paper "Internal controls and weaknesses report" aims to analyze purchase and payment and the receipt and sales functions of a business enterprise. Audit and assurance are important accounting functions which seek to check the completeness of financial records. These two functions are mandatory for businesses that operate as public limited companies. However, other business establishments, including sole proprietorship, can opt to conduct an audit of their business processes so as to ensure that their businesses are operating optimally. This voluntary action will go a long way in ensuring that the interest of the owner of the business is safeguarded. The purchase and sales functions of this business happens to have some weaknesses which can be remedied by the implementation of the recommendations that have been tabulated. The purchase and the sales function of a business are very important to a business. These functions ensure that the assets of the business are well taken care of . It is very important to ensure that these functions are operating optimally to ensure that the business operations run smoothly. Audit and assurance is the business function that maintains control on this processes. This function ensures that the correct books have been kept and the right transactions have been recorded. It also ensures that proper authority has been obtained for any business transaction to occur. An accounts payable clerk (AP) and purchasing officer (PO) are employed in addition.