Question

Jonathan is the sole shareholder of Furry Lion Stores, a company which owns five stores in the
west of England. The stores sell mainly food and groceries.
Each store is run by a full time manager and three or four part-time assistants. Jonathan spends
on average half a day week at each store, and spends the rest of his time at home, dealing with
his other business interests.
All sales are cash and recorded on till rolls which the manager retains. Shop managers’ wages
are paid monthly by cheque by Jonathan. Wages of shop assistants are paid in cash out of the
takings.
Most purchases are made from local wholesalers and are paid for in cash out of the takings.
Large purchases (over 2,500.00 GHC) must be made by cheques signed by the shop manager
and countersigned by Jonathan.
Shop mangers bank surplus cash once a week, apart from a float in the till.
All accounting records including the cash book, wages and sales tax records are maintained by
the manager. Jonathan reviews the weekly bank statements when he visits the shops. He also
has a look at the inventory to see if inventory levels appear to be about right. All invoices are
also kept in a drawer by a manager and marked with a cash book reference, and where
appropriate a cheque number when paid.
Required
Discuss the deficiencies in the control systems (Inventory, cash, bank, reconciliation, purchases,
supervision etc.) of Furry Lion Stores, and how the weaknesses can be remedied.

kindly answer ASAP
VERY URGENT
DIFFERENT OPINION NEEDED...
DETAILED INFORMATION NEEDED

Answer 1

According to given data ,deficiencies in the control systems (Inventory, cash, bank, reconciliation ) are discuused below:

index: This storehouse does not seem to possess an inventory record-keeping method. The user just " views" toward the inventory levels to verify if they do right i.e. does nearness procedures which can guide to a danger of moving out of inventory also it is hard to decide if this inventory levels are extremely high or extremely low. Any damage or pilferage in inventory is cannot be identified without proper accounting documents.

Cash: Whole transactions do majorly taken out in money which risks carrying extremely cash through the business. There is too no separation of services as the director who controls the cash book is too mature as cash adjustments including signing of the cheques. Aforementioned can head to false activities being offered by him furthermore siphoning off of funds. There is further shows small documentation to raise cash adjustments.

Bank: Bank activities do transferred out on a minimum data moreover there is no accounting for bank or cheque activities. Whole adjustments or slips into the bank are registered in the savings book including this may nevermore adapt the records.

Cash adjustment: There is nothing to designate that the till records preserved are adjusted to the cash stealings. Daily adjustment of the cash getting and till records must be transferred out by a person sovereign to the property supervisor.

Bank settlement: Bank settlements do not appear to be practicing place and the landlord will nevermore grasp of where the money in the person is done for. This raises the hazard of scam as properly.

Investing: There is negative accounting for investing also there no proper way of maintaining invoices as well. With no proper records of investing accounting, it will be hard to develop economic descriptions and determining the declaration of affairs of the corporation.

General Ledger: There is negative remark of a common record signifying sustained which suggests that the economic announcements and administrator's reports cannot be provided quickly.