Examine the financial transactions of Picot Zen Chen company limited Essay

Level 6

Level 6

Undertaking 1

Using the instance survey on the succeeding page, do the followers:

  1. Develop methodological analysiss with the purpose of set uping the unity of fiscal records

Methodologies

1Prepares accounting records by following a peculiar or we can state appropriate criterions.

2All the checks which are issued and collected dual chink on them. Monitor a dual entry book maintaining each dealing that are incurred by the company.

3Data Control System is required to command all the internal sections merely to guarantee cheques and balances.

4Each bank statements must look into decently and must compared with every reception and payment with bank rapprochement statement that incurred every month.

5Re-Check carefully all the checks issued by the Pico-Zen Chen company ltd.

  1. Explain how the methodological analysiss developed be implemented.

Methodologies development is implemented in pifco-zen-chen company limited to extinguish the abnormalities and to bring forth an appropriate fiscal records of the company. This is initiated by CEO traveling to the 3 degrees of direction.i.e. top, in-between and bottom degrees, direction to participated by all the employees in the accounting, supply and teller deepness. It should be good monitored and cross checked by an external and internal audit. Must make a merriment environment by forming some sort of maps or trivia darks.

  1. Identify the mistakes and abnormalities in the recording, categorization and summarising of fiscal minutess made by three executives in picot Zen Chen company limited.

1Incorrect entry of overvalued stock list sum $ 25 million.

2A long term amounting to $ 9 million un-updated for payment.

3The bank rapprochement statement provided by the company which is included wrong computation.

4reception of resiling checks up to $ 3 million.

5A short term debt on the books of history $ 65million but existent sum was $ 55 million falsely recorded.

6Bank overdraft loan borrowed by the company which should reflect an $ 85 million and non $ 75 million.

7Not inclusion of the sum of purchased supplies made by the gross revenues nd doing director amounting to $ 15 million.

  1. Recommend A CORRECTIVE ACTION WITH REGARDS TO THE ERRORS VAND IRREGULARITIES FOUND IN THE FINANCIAL TRANSACTIONS OF PIFCO ZEN CHEN COMPANY LIMITED.

1All concern minutess should be recorded decently either its large or little minutess.

2Proper certification must be made for all the checks and hard currency that was disbursed in every dealing and do a proper entry of informations into the data sheet.

3All fiscal paperss and informations must be updated in every purchase and the income incurred whether it be at little or large sum.

4Have unity in informations and be crystalline and entry of every dealing of the company.

5Make a proper designation of the current or postpaid outgos of the company incurred during every dealing.

6Proper recording of all the minutess should be made for all the little and large sum.

7The correct, just and true position of statements in the fiscal study and meeting should be delivered by the individual in charge whether he or she may be gross revenues manager/ finance manager/risk director for the board to cognize the true standing of the company.

8The service of external will assist to happen out abnormalities and finally extinguish it.

Undertaking 2

2.1 Record in dollar footings and reexamine the operating efficiencies of Pifco-Zen Chen company limited.

Operating efficiency US $

Net Fixed Assets 4

Investing in Subordinates 30

Current Assets US $ ( million )

Stockss 125 ( -25 ) 100

Debtors 90 ( -9 ) 81

Prepaid Expenses 40 ( -7 ) 33

Bank Deposit ( 7day call

Account ) 60 ( -3 ) 57

Cash at Banks 30 30

Petty Cash 1 1

346 302

Less: Current Liabilitiess

Creditors 45

Accured Expenses 30

Short Term Debt 55 ( +10 ) 65

Overdraft Balance 75 ( +10 ) 85

` 205 232

Net current Asset ( $ 346- $ 205 ) 141

Entire Net Assetss

Financed by:

Long Term Debts 80

Capital 90

Assumed Net income Until 1975 46 ( 25 )

136

2.2 FROM THE END BALANCES SHOWN FROM THE BALANCES SHEET AND ADDITIONAL TRAMSACTIONS STATED IN THE PRECEEDING PARAGRAPH, DETERMINE IF ORGANIZATIONAL FINANCIAL POLICIES AND PROCEDURE OF PIFCO-ZEN CHEN COMPANY IS OBSERVED.

False entering done by three executives:

1False recording of histories done by three executives.

Coy didn’t follow appropriate policy and accounting criterions needed to explicate complete, dependable and useable fiscal statements.

2The act of use of histories stated that they didn’t pattern GAAP that should be followed by every entries to explicate fiscal studies that can be provide just and true position of the fiscal informations to its users

2.3Make a study which identifies the strengths and failings of the company and includes recommendations for betterment.

STRENGHTS:

1Identify jobs and take disciplinary actions.

2Marketing scheme and gross revenues scheme is really good.

3Product advanced

4The assurance of three executives to service for a long old ages even the altering province of economic system.

Failing:

1Dishonest directors

2deficiency of transparent due to hapless information control system.

3incorrect accounting rules and internal hearers.

4Incompetent external and internal hearers.

Recommendations:

1Specify Your Goals:Determine your steps for success. Make your ends disputing, but accomplishable. Do you desire to increase client keeping, better market portion, perforate a new market section, alter a perceptual experience, bring forth more shop traffic, cut down client ailments? Be specific and do your aims mensurable. For illustration, by what per centum do you desire to increase gross revenues? .

2Develop Methods to Collect and Organize Data:Determine a procedure for tracking and describing all relevant informations. Report on tendencies that emerge from your findings on a regular basis..

3Understand Your Strengths and Failings:Rate your company on your developed list of prosodies in comparing to your rivals. Look for bunchs of strength that may give you a competitory advantage.

4Measure Marketing Effectiveness:Effective measuring lays the basis for future programs, so maintaining path of consequences is the lone manner to better your selling attempts. The key is finding which informations should be collected. Your selling consequences may be measured in gross revenues ( dollars or units ) , market portion, shop traffic, figure of enquiries or decreased ailment rates, or other prosodies. Tracking can besides be based on studies that assess client perceptual experiences

.