Question

Suppose several additional junior staff are employed in subsequent years after a new business is established. The owner notices a large increase in the motor vehicle expense account. What changes to assumptions or controls would you recommend? Discuss in 80–100 words.

Answer 1

Recommended controls that help to reduce the exp:

1. The junior staff to use their motor vehicles not so often and only when there is a real need.

2. it is better to note down the opening & closing reading of the motor vehicle on a daily basis to regulate the cost which were employee used other than for official purpose.

3. in the daily works we can use some software to track the employees, which may have more control on employees.

4. Ensure that motor vehicle has been arranged ,only for employees who has been ravelling for the long distance so that number of vehicle scan be reduced which ultimately reduce the cost.nd for other employees provide allowance sbasedd on the kilometer travelled which will be low cost compared to vehicles arranged to them

5.more over,due to updated technology during this Era many services has been provided through the use of internet.So instead of going for contractor it is better to avail these services whenever need has been arrised ,at the cheapercost.