week thre audit 2

week thre audit 2 - Weaknesses Include: INGREDIENTS...

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Weaknesses Include: INGREDIENTS INVENTORY 1. There is no control that the inventories are used during the day because they are only counted at the end of the day by a different department. 2. The inventory control department only calculates inventories on a weekly basis so there is no way of knowing the actual amount of raw materials used. 3.Purhcases are done by the inventory control department so there is not an authorization for the purchase of inventories. MAINTENANCE PARTS AND SUPPLIES 1. The practice of storeroom requisitions is not followed always so there is no control over material issued. 2. The storeroom is not locked when the clerk is out so there is no physical control over assets. 3. The storeroom is open during the third shift so the physical control over assets of the company is lost. 4. Purchase requisitions are prepared by the storeroom clerk. He is not the authorized person to make requisitions. 5. Physical inventory is taken on a cycle count basis. Reason: This introduces errors in the inventory count. Recommended improvements: INGREDIENTS INVENTORY 1. The raw materials are received by one of the employees of the batching department and it is only at the end of the day that tallies are given to the inventory control department. Improvements: The inventory control department should enter the materials received when they are physically received. 2. The inventory control department uses weekly reports of production and standard formula to calculate ingredient use. .Improvements: The inventory control department should use the actual use figures of material allotted to production 3. Purchase requisitions are prepared by the inventory control department. Improvements The purchase requisitions should be prepared by a person appointed by the purchase department and not by the inventory control department. MAINTENANCE PARTS AND SUPPLIES
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week thre audit 2 - Weaknesses Include: INGREDIENTS...

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