Accounts Receivable Cycle
Riordan Manufacturing, an industry leader in the field of plastic shot molding, offers facilities in California, Georgia, Michigan and China. The accounting functions are completed in each individual location, and consolidated intended for processing inside the corporate office buildings in A bunch of states. The Atlanta and The state of michigan locations, becoming newly bought, are using devices that are not completely compatible with the organization offices. This really is causing complications on a large number of levels and within this daily news, Learning Staff A is going to discuss the accounts receivable cycle because Riordan Manufacturing would like to achieve. Learning Staff A will discuss the strongest and weakest points of the internal controls with the accounts receivable cycle, the integration of the routine into venture wide accounting information systems and the various kinds of information devices that will be necessary for the integration. Finally, Team A will present a flowchart demonstrating how the accounts receivable info optimally flows through the company. Strengths and Weaknesses of Internal Controls
Internal control is to some degree broad in nature, yet specific enough to protect the corporation. Some basic accounting controls need to be implemented to make sure stockholders the fact that financial records are correct. Six control activities are necessary to a provider's internal control system. These types of activities make the perfect audit trail, sound workers policies and practices, separation of obligations, physical security of property, internal evaluations of settings and on time performance information. If handles are not effectively implemented, the business could be vulnerable to theft and inaccuracies. Two controls which have been key elements in any accounting department are separation of duties and processing regulates. For example , if the same employee techniques payments and processes financial institution deposits, this violates separating of obligation controls and leaves the doorway open to embezzlement. Processing controls will also aid to prevent any...
References: Dunn C. L., Cherrington T. O., Hollander A. S i9000. (2004). Business Information Devices: A Pattern-
Based Procedure, 3e. The McGraw-Hill Businesses, copyright 2004.
Wikipedia (2007). Enterprise Source Planning. Retrieved on August 20, 2007 from