ACCT342 Manage Finances-internal controls of the business

Assessment Criteria:  To achieve a Satisfactory result, your assessor will be looking for your ability to demonstrate the key skills/tasks/knowledge detailed in the Assessment Task to industry standard.  Your submission should be of a professional standard, using full sentences and paragraphs.  In addition, the assessment criteria for each part of this assessment is detailed below.

Part A

1. Identify the meaning of each ratio and describe the factors which impact each ratio

2. Improvement or deterioration in each ratio correctly identified
3. Two reasons for the change in each ratio are correctly identified
4. Two changes to business practices which would improve or further improve the ratio correctly identified

Part  B

Appropriate recommendations provided regarding the record keeping and internal controls of the business

Part  C

• Two significant business issues are correctly identified
• Appropriate recommendations provided to address the identified business issues and ensure the financial viability of the business 

For each of the ratios above:

1. Calculate the ratios for 30.6.20 & 30.6.21

2. Write one short paragraph on the meaning each ratio and the factors which affect the ratios for this business.

3. Detail whether each ratio improved or deteriorated compared to the prior year (one sentence)

4. Describe two things that the business could be doing which is causing the change in each ratio from the prior year to the current year (one to two paragraphs).  Read the financial statements to determine which specific areas caused the change.

 

5. Recommend two changes to business practices which the business could implement to improve or further improve each ratio and financial position of the business.  Ensure these recommendations refer to the issues identified in point 3 above (one to two paragraphs).

The business is using manual cash books and you are concerned about the lengthy delay in preparing the financial statements.  You are also worried that the reports are missing transactions and stock records may be incorrect.

What improvements would you recommend regarding the record keeping and internal controls of the business (think about the accounting system and systems and controls that could be put in place to address these concerns).  Think about your responses in Part (A).   Write two paragraphs.