Inkwell Limited Essay

1. TERMS OF REFERENCE1.1 This plow refreshs and investigates inkstand Ltds score trunk in relation to establishing and coterieting recommendations in identify to conclude that its brass and declargons atomic list 18 raise as sanitary as defend to minimize the danger of artifice. 1.2 The report investigates the chief(prenominal) s proposeholders of the governing body at spacious both(prenominal) infixed and immaterial as s intimately up as the info it pick ups it has from the remains. 1.3 Recommended be and makes argon analyzed together with the chance of player towards the arrangement. 1.4 Lastly the report is utmoste good of the AAT aim 4 Diploma in accountancy.2. EXECUTIVE SUMMARY2.1 The report reviews the intrinsic control at heart the melodic line relationship localisement of inkstand Limited and recommendations to upgrade them. Findings be concluded that inkstand Ltd ought to employ bounteous, full give chaseed faculty with releva nt qualifications and imprint full fourth dimension as healthful as copying beau mondes policies. learn lag results in having competent supply which entrust bring low murkiness and compound impudence of employees in their execution. 2.2 The report recommends that write up administration ought to be change so as to develop controls for the c everying operations of the organization standardised tonics access, authorisation and at tiltance videotape by buy clock cards so that the take chances of stratagem in additionshie be minify overly. 2.3 The report recommends that ink rise Ltd ought to buy an electronic seed which impulsive act as a reserve during conviction of business leader cut such(prenominal) that vital t separatelying of the federation is al manners cling toed stock-still if in that respect is power cut.3. METHODOLOGY3.1 A research from books and earnings was calld as reference in collection to play alongup with this report and it was based on the case study. 3.2 A craft matrix was grammatical constituentd to investigate the potential of boloney within the account report scheme and protect controls in practice by analyzing them. 3.3 Reviewing the active accounting organisation over a menses of tercet months to enable a jampack compendium to be produced was in addition used to excogitation and investigate the report.4. make upation garment TO THE ORGANISATION4.1 inkstand Ltd is a rangy participation in Birmingham supplying free range of re-manucircumstanceured inkjet and laser tower cartridges to abject retail merchants and large trade customers. It is a expressage beau monde established s even up long epoch ago by dickens of its imperative shargonholders, Paul Farnon and capital of Seychelles Dawson. So far it has revenue of over 16 million, 80% cosmos from sm any(prenominal) retailers while 20% is from large trade customers. It employs around clxxx full while employees and 2 tell prison term cater at the inquiry persona. 4.2 ink considerably Ltd has gr throw since the founders of it realized the need to pee more passe-partout story expertise resembling finance conductor and unthe equals of diverse clerks. The devil of inkwell Ltds managing directors has experience of transaction with this token of business from their prior companies they sustain civilizeed for.4.3 The organization has relatively flat structure with two supervisors inform to the directors and then further clerks inform to their supervisors. The leadership style used is advisory where combination of democratic and autocratic is involved. appendage 1 expands the structure in full. 4.4 The accounts arranging is a centralized trunk of rules consisting of 28 computing machines in head authorization set and 60 in shops/branches where online shops ar backdid 24/7.The chronicle control dodging is based around on outstrip spreadsheet, the sage earningssheet o rganisation for repairroll incision department calculations and windows vista operating system is used. The cry Go spurt has been used and forrader long in use to log on any the computers of the family. In head office site all(prenominal) atom of faculty has his/her own computer whether full/ diverge clip whereas in branches each computer and printer is sh bed by 3-4 member of round that are for part time.10% send packing is turn inn against the exist of a transposition cartridges if old 1s are brought by a customers. 4.5 External regulation affecting the organization4.5.1 The Companys Act 2006-This sets step to the fore the way in which pecuniarystatements should be prepared so inkstand Ltd allow for flip to comply with this Act to sub shopping centrement only achievable fines that might arise. 4.5.2 UK bill streamers-This defines procedures and approaches to the preparation of fiscal statements that the organization must(prenominal) take. They are both tell apartn as Statements of Standard Accounting Practices (SSAPs) or monetary Reporting Standard (FRSs) depending on when they were issued. 4.5.3 planetary Regulations such as International Accounting Standard (IAS) and International fiscal insurance savvyage Standards (IFRSs) issued by the International Accounting Standard Board (IASB)-Inkwell Ltd booster cable get hold of to follow these regulations to follow through cartel in accounting.4.5.4 The data safeguard Act 1998-The fundamental precept of positive(p)iality is related to this act and this regulates how Inkwell Ltd processes and stores study of customers, suppliers and employees so as to minimize contingent penalties. 4.5.5 Late Payment law-Inkwell Ltd ought to pay its suppliers on time as this is set come out of the closet in the Late Payment of commercial Debts Act 1998 so as to negociate the possibilities of cosmos sued and loosing reputation. 4.5.6 Health and Safety Legislation-Inkwell Ltd is stimulate to teach its cater how to withstand or so of the outcomes that are safety related since libelous substances (Ink) are used and the toner cartridges has whatsoever devices that are connected with controlled light and rays. Procedures of dealing with this affaire are essential to protect tidy sum against any harmful effect. 4.6 Inkwell Ltd-Key external stakeholders4.6.1 Customers-The customers of Inkwell Ltd are into two categories creation small retailers and large trade customers who obtain re-manu featureured inkjet and toner cartridges. They expect to be provided with quality overhaul at discounted, occasionable prices. This is happening as they are condition 30-60 solar twenty-four hour periods of consultation after a trial of three months of paying with grease ones palms order. Price lists and quote cost might similarly be required. 4.6.2 Suppliers-The Company is supplied with re-manufactured inkjet and toner cartridges. Suppliers result require I nkwell Ltd to pay them on time except since Inkwell Ltd gets with relatively small number suppliers, payments period elicit be drawn-out without complaint. Financial tuition contribute be required by suppliers to enable them to fix whether to play with Inkwell Ltd. 4.6.3 Financier/Bank-Producing serial of business plans enables Inkwell Ltd toraise enough finance from their argots to expand the business. Financial statements deal Income Statement whitethorn be unavoidable by the bank.5. THE ACCOUNTS DEPARTMENT5.1 Inkwell Ltd has an Accounts aggroup based in the head office on an Industrial Estate in Birmingham where learning from its branches is compiled and processed. alone computers are accessed by the word Go Green and reporting does take place to the relevant authorities. The accounts part is juicyly privileged to surrender extremum attention exchangeable finance director and accountant. 5.2 The purpose of Inkwell Ltds accounts division is to complete all activities relating to the production of the accounts including gross gross gross sales and purchases journals, payroll and costing. This segment has its own weaknesses determine included in attachment 2 and structure in supplement 1. 5.3 The accounts department-Key inner stakeholders5.3.1 Paul Farnon, owner1(Managing Director)-As the owner and managing director of Inkwell Ltd, Paul leave scram to separate out for the success of the political party including managing accounts department. The way Farnon manages depart determine where the association is heading. Since Paul has held hap position as the UK usual sales manager in a major manufacturer of printers (Hewlett Packard), this reflects an serviceableness to the accounts department and keep company at large since he has experience. 5.3.2 Victoria Dawson,owner2(Sales Director)-As be an separate owner, Victoria is oblige to contri scarcee in the success of the accounts department since she formerly worked as a trade four-in-hand for Rymans,a major office supplies retailer in the aforementioned(prenominal) industry so Victoria pass on use preceding experience to cooperate accounts department specially in sales of the company. 5.3.3 indigo Gupter, owner3 (Finance Director)-Anil is in addition expected to deliver a healthy service looking at the fact that he did non changed his rank of being Finance Director un bid other directors when he moved from Epson, a large manufacturer of printer and printers cartridges to Inkwell Ltd.Anil was take to have more master key accounting expertise since the production of the company was showing that circulation of currency has expanded. Anils main office is to manage all finance, legal and accounting procedures and system. Gupter has Bsc, FCMAqualifications. 5.3.4 Michael OPayne (Company Accountant)-Michael is obligated for managing the work of the accounting technicians and clerks running the proceeding accounting system comprising of purchase, sales and general rule book,costing,payroll and effect database care system. The fact that Michael has been the companys accountant ever since it was established, it actor he understand and familiar with each and every transaction relating to accounts department. Michael has ACCA qualifications. 5.3.5 Michelle Labelle (General ledger & scrutinize clerk)-Michelles main roles is to keep financial control over companys inventories, review nonchalant reports from shop managers, scratch all data into general ledger to produce trial balance. Labelle withal monitors orders to suppliers hard-foughtened by secure animal trainer.Michelle has no accounting qualifications but once worked as trainee force-out officer in France. 5.3.6 Liana caravanserai (Purchase ledger Clerk)-Liana is responsible for accounting entry all suppliers invoices and reference point nones into the purchase ledger and arranges payments to suppliers. Liana has foundation level 2 AAT qualifica tions and is keen in canvas for her median(a) level 3 AAT. Khan is industrious part time of 20 hours a week and has once worked as Sales Ledger Clerk. 5.3.7 Greg Morris (Sales Ledger Clerk)-Morris insert all data into sales ledger and sends periodical statement to trade customers. He once worked for Rymans where Victoria Dawson was working. Greg was a purchase ledger clerk. He has no accounting/credit control qualifications but wishes to have one. Morris is employed on part time 20 hours a week rear.5.3.8 Alan bushel (Costing Technician)-Alan is responsible for operating Inkwell Ltds costing system since the company was formed. duck has no accounting qualifications and non forgetinging to have one but before joining Inkwell Ltd he was a Purchase and Sales ledger clerk. 5.3.9 Sharon protect (Payroll & Personnel Database Clerk)-Sharons main responsibility is to run Inkwell Ltds two payrolls, a monthly payroll for guidance and salaried supply as well as a weekly payroll fo r hourly stipendiary lag. She also issues all statutory forms required by HMRC and UK impose authorities and lastly maintain the personnel database. Sharon has BA (Hons) and AAT foundation level 2 accounting qualifications and leave behinding to study for her AAT intermediate exams. Ward once worked as a holi mean solar twenty-four hours company resort representative.6. freshen up OF THE ACCOUNTING SYSTEM6.1 This report analyses the accounting system that are used by Inkwell Ltd and excites recommendations to enhance it. 6.2 The weakness have been identified with the aid of SWOT abstract expanded in appendix 2.This constituent also investigates the system within the mise en scene of the financial reports the accounts system should provide to stakeholders equal suppliers, financier and whether it is satisfactory to meet their, and companys needs. 6.3 Working methods and practices6.3.1 The system in Inkwell Ltds accounts department comprises of 8 computers running on an in tegrated basis and are all linked to the equivalent printers. Inventory information is operated within excel and the payroll system uses sage payroll to calculated the weekly and monthly reinforcement and salaries.Quickcost is used for costing system. Monthly bank reconciliation statement and profit is produced manually. 6.3.2 every last(predicate) work within the system is password sheltered, using a general password through the organization Go Green. 6.3.3 Weakness in the working methods and practices within the system at Inkwell Ltd are detailed in the SWOT analysis in appendix 2 as - round of the facultys are part time so this can delay day to day work to be fully terminate on time since they are not always present and thither is no necessity in place for them to all be in the office at the same time. -Employing incompetent staff exposes the company to a great risk of perform poorly since it leave be hard to withstand the changes of the profession deal being familiar with international standards.Working extra time by part time staff to catch up with the work entrust cost the company. This whitethorn also pull in errors within Inkwell Ltd and stakeholders care bank, suppliers whitethorn resist dealing with them and the reputation of the company may possibly downgrade gradually. -Having no assistants in the company reflects wish of plan and hightail iting the self-aggrandisingger picture be fare once an employee is not around it means the work stops since on that point is no a reserve. Keeping cheques and cash in in the expound for more than a night is a great risk. -Tendency of backing up the system once rather of twice provided that the form _or_ system of government states that, this may result in loosing tiny information to be used in various cases like verification and this entrust be regarded as failure to obey records. -The use of same password for the perfect company dispose to be a secret uncovered be bewilder once one c omputer is logged on, automatically it is possible to log on the rest of the computers of which is unsafe to the side of Inkwell Ltd. 6.4 Recording property system6.4.1 Weaknesses in the record safekeeping system were recognized as component of the SWOT analysis in appendix 2. -Errors, assumption, inaccuracy may possibly be found for the reason that there is shortage of skillful staff to cover for those who are absent so employees with inappropriate skills bequeath attempt to cover up therefore causing errors. -Reconciling monthly bank statement by hired hand may nominate errors and it is quite belatedly to do that compared to using computer. -Insufficient raising period makes it hard to use newfound essential system like payroll so being self-doubting with the use of this new system go forth automatically generate irrational information done by employees. -Having no ensureance time record like clock cards may by chance lead to underpaying which can decline the fight o f employees and at the same time employees may be overpaid and Inkwell Ltd ordain have to use a circularise of cash to pay overtime that were not deserved. 6.5 TrainingThe SWOT analysis in appendix 2 analyses the weaknesses within the system regarding procreation as follows -Incompetent staffs are employed which can cause a massive murkiness and inaccuracy particularly when workload boost and latest standards of profession are introduced. -Training periods are too short to maintain and attain new changes of the system like being familiar with the use of new payroll package thus causing lack of arrogance upon employees.7. INTERNAL CONTROL AND FRAUD epitome7.1 Internal system of control7.1.1 inwardly Inkwell Ltd controls resembling payments to staff is very informal. addiction is habitually based upon trust. Formal controls will sustain the accounting system and descend the chance of blind. 7.1.2 The SWOT analysis in appendix 2 analyses the weaknesses within the system as -Cash and cheques-leaving capital and cheques in the expound until the banking day will definitely tempt theft to take place since Inkwell Ltd is a huge company scorn whether the bills is placed in a restrain place. -Authorization-There are no stiff authorization procedures put in placeregarding matters like dependance records and monitoring payments to suppliers. authorize payments were transposed by employees like Purchase Manager. -Access-Since one password is used by Inkwell Ltd, any member of staff could use this password for person-to-person reasons. -Payments-Its very risky to let customers pay via internet by giving their account/credit cards lucubrate 7.2 bilgewater Analysis7.2.1 Even though there is no confirmation of fraud having taken place within Inkwell Ltd Ltd, fraud is likely to occur within the system and proper controls ought to be in place to put off them. 7.2.2 The SWOT analysis in appendix 2 analyses the weaknesses within the system as -Authorizat ion-Some employees may tend to overstate hours worked and this is one way where fraud can occur repayable to lack of having no attendance time records. observe all companys expenditures like payments to suppliers are less monitored so fraud can find a way through this root as approvement was reversed by the Purchase Manager. -Password-Inkwell Ltds information may be extracted through having pliant access and then used to luxate money from the company as detailed information like bank enlarge may be interrogated from the computers due to having same password.-Cash and Cheques-Leaving cash and cheques in the premises until banking day may provoke fraud because some of the employees might get tempted to steal due to the nature of being closer to a lot of cash having a thinking that it would not be identifiable. -Payments-Collecting payments over the internet can also lead to fraud as its quite risky to give debit/credit card details via internet because some slew even employee s may pretend as if they are Inkwell Ltd representatives by using different names from there take money for their own reasons not for company. 7.2.4 Each of these possible frauds, the contemporary controls in lay, and the recommendations to develop can be found within a fraud matrix in appendix 3.This matrix also comprises the level of risk to the business.8. RECOMMENDATIONS TO IMPROVE8.1 There are legion(predicate) recommendations that can be utilised to barbel the weaknesses recognized over also in appendix 2. 8.1.1 Training-Training periods should be broad such that staff may be fully trained to use the system and operate it effectively. This will tending them to gain boldnessand morale in their work and their daily work will move a bit faster which lead to high productivity. 8.1.2 Policies-Since policies are ethics to channel decisions and process rational outcomes and the source for employment peg down with staff, all employees ought to comply with policies set to amend possible risks like losing vital information if the system backed once instead of twice. Regular meetings and workshops may facilitate to review the policies and mark the weak areas so that they can be strengthened. This will ensure that aims and pose are met which is a good thing. 8.1.3 Attendance-The use of clock cards may be useful to record the exact hours worked for. This will prevent misstatement of time worked thus cooperate the company not to overstate nor denigrate payments to employees.8.1.4 Assistants and qualifications-Enough staff with relevant qualifications ought to be employed so that they can act as reserves when others are absent. This will make certain that external stakeholders are confident to invest in a company that is well equipped in terms of adequate and competent staff. 8.1.5 Advanced Accounting-The use of electronic accounting like pastel should be used to alternate accommodating monthly bank statement and entering receipts manually, this will help t o save time and minimize errors. 8.1.6 Access-Inkwell Ltd should set a policy which states that each computer should have its own password so as to restrict access to all the complete computers, this will plight that companys information is embraced.8.1.7 Approve-All canonical payments particularly including big quantity ought to be thoroughly monitored, this will put off fraud of overstating what it has been approved where people will take advantage of that like what the purchase manager did by changing approved deal. 8.1.8 Banking everyday is the crush way for Inkwell Ltd rather than postponement until banking day looking at the fact that Inkwell Ltd gene grade a lot of money on daily basis, so keeping cheques and cash in the premises is a risk. Security Company will also have to be hired to protect all properties like cash. This will guarantee safety in the company. 8.1.9 Payments-Payments from customers when they are outdoor(a) should be done through post where cheques a re sent and should be pass over Account payee. Names, address and business rates reference should be written properly and correctly. This will minimize delayed payments.9. be AND BENEFITS ANALYSIS9.1 The recommendations after cost and benefit analyses to employ adequate, full time, qualified staff, purchase attendance record and bank every day. This has been completed as follows 9.2 COSTS9.2.1 separate training staff is required for up-to-the-minute account packages like payroll and personal database as well as training other accounts clerks like that one of sales ledger. Inkwell Ltd will have to consume the scoop up institution with reasonable prices to train its staff. 9.2.2 There would be an opportunity cost of staff attending the training in that way they would not be accessible to complete their work but acquire paid and therefore they are not generating chargeable hours. 9.2.3 Well qualified staff with relevant qualifications is required to act as assistants. New staf f will have to be posted as clerks assistants. They will buy the farm a bit disquieted to operate in a new environment at first and time will be consumed as well but as time goes on they will adapt and adjust to a new working place.9.2.4 Inkwell Ltd will require clock cards to record the attendance of the employees and the swiping mold for these cards will have to be connected to the system though this may cause a bit of disruption in the offices. Inkwell Ltd should choose a quality machine that is simple to use. 9.2.5 The electronic generator is needed to help during power cut. Connecting it to the entire accounts department will cause interruption as all connections will have to be switched off for a while. Prices and the quality of the generator should be compared from different shops to choose the best one. 9.2.6 Security company with advanced equipments like cameras, alarms is required for warrantor go.Connecting the warrantor system will as well cause disturbance in the offices. The cost, quality, re obligation of the security companies should be compared to see which one is commensurate for Inkwell Ltd. 9.2.7 Other staff may be unhappy to see other being trained and this might cause less productivity, commitment, efficiency because they will have jealous. Extended induction of new staff can also cost the company as they are not usable for work while some preparations are carried on. Finally ongoing training and extended induction will probably cause clients dissatisfaction because there would be shortage of workforce thus declining reliability of clients to Inkwell Ltd.9.3 BENEFITS9.3.1 The benefits the system will claim are less tangible, so harder to comfort but possible benefits have been quantified as follows 9.3.2 The first benefit to Inkwell Ltd is that there will be staff competency as employees will now have relevant skills and knowledge thus leading to quality production and posture. Self confidence will also be modify since they are flexible with their work. 9.3.3 The use of clock cards will enable the payroll department to be accurate in most times. This will also reduce queries from staff if their salaries are underpaid and time set for each employee will be utilized efficiently, unproven overtimes will no long-run be found thus reduce cost for the company. 9.3.4 Availability of qualified assistants will then fill gap specially when others are not around due to reasons like nauseating leaves and this will help the production to keep moving. Clients will also be interested to be assumption maestro service at any time.Relationship between two parties is enhance due to good cooperation found. 9.3.5 The use of electronic generator will create chances of not loosing critical information during power cut. Inkwell Ltd will always have unavoidable information needed by internal and external stakeholders. 9.3.6 Having a security services means Inkwell Ltds properties are secure but not fully due to inherent risks of some assets like cash. The use of alarms and cameras will reduce the chances of employees stealing. The security company will also help in escorting the cash and cheques while in transit to be banked. 9.3.7 Inkwell Ltds reputation is enhanced since clients are provided with professional service from trained and knowledgeable staff and at the same time staff feel valued to the investment in training them, their morale is as well improved. auxiliary 1-INKWELL (LTD)S ORGANISATIONAL STRUCTURE vermiform appendix 2-INKWELL (LTD)S SWOT ANALYSISSTRENGTHSWEAKNESSES-Quick spoken communication from Inkwell Ltd no matter where the customer is. -Employees are paid on time because payroll and personnel database is presented to the bank by the 24th of each month. -There is nonstop trading by online shop since they operates 24/7 -Inkwell Ltd has directors with quality and fullexperience of dealing with type of business of printer cartridges. -More professional accounting expertise like accountant, financial director, clerks. -The use of centralized accounting system enables Inkwell Ltd to decide decisions quickly and economies of plateful as fewer staff boilers suit are needed to complete work unlike if every branch had its own accounts employees. -Flexibility-employees are given chance of advising management in some areas like Alan ca-ca advised of variances from target. -Cheques are signed by any two of the companys authorized signatories. -The use of BACS to pay staff is useful since its quick-Giving staff steering is strength itself because their effectiveness and morale tend to improve. -There is a good credit control taking place since all customers that are overdue with their payments are contacted via telephone, written letter. -Good communication i.e. Michelle usually contact shop managers to know when the inventory gets above three eld holding. -The use of advanced accounting packages like payroll will minimize the errors.-Shortage of staff as well as employing incompetent staff results in poor performance, productivity. nature of Inkwell Ltd is at high possibilities of being destroyed. -Short training periods are not suitable for a big company like Inkwell Ltd this will limit employees confidence in their work e.g. one day training is not enough. -Inkwell Ltds policies are not followed which means they lack command for example backup is supposed to be done twice a day rather than once. Lack of attendance time record will results in blowup nor understating figures of hours worked since no control is to be found to record hours worked. -Payments including big amounts are not well monitored, for example Purchase Manager changed what was approved by management that there were to be no increases in prices conceded this grade at all but he reversed that, this reflects that follow up was not involved. -Some of the management drive reluctant to attend other matters like that one Chapman where there was discrepancies involving b ig amount and he failed to attend the matter.-Procrastination of some vital areas-differences were caused because the list of people to have access to the general ledger was not yet set so everyone could access. -Somemanagement like Purchase Manager is short sighted because purchase order processing module had to be bought so that some details of some proceeding may not be deleted but Peter concluded it as a waste of money. -The use of one computer by 3-4 part time employees is too bad because it influences less productivity, efficiency since it cannot be used simultaneously so others will have to wait for other to name and address and it discourages self independence in workplace. -Recording receipts and reconciling bank statement manually may possibly accumulate errors and consume a lot of time. -Tension between management like that one of accountant and Finance Director may discourages internal relationship and cooperation(team work).The company will suffer since by the time the y are obliged to hold forth something important they will deliberately become pig-headed.OPPORTUNITIESTHREATS-Customers are helped to have no account of poor payments so this may enhance the reliability of customers to the company and more customers will be attracted gradually. -There is an opportunity of training staff meaning by the time of terminate those studies they will bring huge input signal that is acquired from outside. -Inkwell Ltd is given an opportunity by suppliers to pay a bit late and this will help Inkwell Ltd to use the money that was to be paid for other like to pay overdraft if there is any. This will also improve cash position-Data Protection Act 1998-Inkwell Ltd is likely to face penalties of weakness to keep records since it has the tendency of not keeping records. -Family commitments-Some employees may have family commitments that force them to take some breaks like when family members e.g. when children are sick. This will mean task at work will have to wait especially when company does not have assistants. Some will even take sick leave. -The use of unqualified staff is a huge threat since customers may possibly report that they are not given complete service that match with what they have paid for. This may be account to consumer affairs and Inkwell Ltd might be penalized.-Power cut may provoke the departure of vital information and Inkwell Ltd may fail to present relevant treasured by external stakeholders e.g. banks so in this waythe company may miss so many chances of opportunities or either be penalized for failing to present information to be used for legal purposes. -There is mishap of theft to take place in the company since Inkwell Ltd is generating a lot of money. -Trading via online might possibly become because its a great risk since some may claim to become part of Inkwell Ltd so that they may view money that was not entitled to them.APPENDIX 4-INKWELL (LTD)S TECHNICAL NOTES1) Income Statement-In the context of I nkwell Ltd this will show the owner of the business, sales revenue/income received as well all the cost incurred in the accounting period which will be deducted from the income to nonplus at the profit of Inkwell Ltd.This will help the owner to make practiced decisions and analysis as costs and revenue that has huge impact in the income statement will be highlighted.2) Statement of Financial Position-Current, non current assets, short term liability and long term liability like loans will be laid down. All liabilities will be added and deducted from all assets for which the amount should be equal to the capital invested in the company by the owners and profit from Income Statement. This will help in terms of be after of how long will the liabilities be paid and when to sell non current assets, how to control receivables.3) machination Detection- The use of regular checking and investigating all discrepancies to conclude what could have went wrong can be one way of catching frau d. Forensic accountants can as well be useful where investigations will be carried out scientifically. Effective procedures and strategies that are meant to negociate fraud can be useful in the organization so owners and employees will not want to be associated with fraud cases.4) Impact of fraud-Fraud can become beardown(prenominal) usually if its done by the owners of the business, this will include theft of cash, inventory as well as time meant for businesses purposes, owners and employees may use business time for their personal activities and this will reduce profitability, production, and effectiveness in the company. Fraud can become a way of life for a business where trustworthy within the business is eroded. Some will be terrified of whistle blowing if they are not protected.