Alden, Inc. (Recommendations for Improving Internal Control) Weaknesses| Recommended Improvements| 1. blunt materials whitethorn 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 takings 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 calculation cannot be used to compensate because quantities on pay 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 takes, it may led to too bear-sized the demand in line of descent from the suppliers.| 2. A never-ending inventory system should be naturalized under the check out of someone other than the storekeepers.
The system should implicate quantities and values for apiece item of raw material. Total inventory value per the pure(a) records should be compared with the general ledger at reasonable intervals. When sensual counts are taken, they too should be compared to the ageless 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 ma terials are purchased at a predetermined reo! rder level and in predetermined quantities. Since production levels may often straggle during the year, quantities ordered may be either too smallish or too great...If you requirement to get a honorable essay, order it on our website:
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