Timber Solution Ltd., a communications equipment manufacturer, recently fell victim to a fraud scheme developed by one of its employees. To understand the scheme, it is necessary to review Timber Solution’s procedures for the purchase of services. The purchasing assistant is responsible for ordering services (such as repairs to a photocopy machine or office cleaning) after receiving a service requisition from an authorised manager. However, because no tangible goods are delivered, a receiving report is not prepared. When the Accounting Department receives an invoice billing Timber Solution for a service call, the accounts payable assistant calls the manager who requested the service to verify that it was performed. The fraud scheme involves Johnson Parry, the manager of plant and facilities. Johnson arranged for a company, Bamber Services, to be placed on Timber Solution approved supplier list. On several occasions, Johnson would submit a requisition for services to be provided by Bamber Services. However, the service requested was not needed, and it was never performed. Bamber Services would bill Timber Solution for the service and then split the cash payment with Johnson. Questions Explain what changes should be made to Timber Solution’s procedures for ordering and paying for services to prevent such occurrences in the future. Timber Solutions Ltd. is expanding and needs to hire more personnel in the accounting office. Leena Barker, the chief accounting officer, knew that her cousin Rose was looking for a job. Leena offered Rose a job as her assistant. Leena will be responsible for Rose’s performance reviews and training. Questions List some problems with the proposed personnel situations in the accounting department. What suggestions would you make to improve internal control at Time Solutions Ltd
Critical Path Method
The critical path is the longest succession of tasks that has to be successfully completed to conclude a project entirely. The tasks involved in the sequence are called critical activities, as any task getting delayed will result in the whole project getting delayed. To determine the time duration of a project, the critical path has to be identified. The critical path method or CPM is used by project managers to evaluate the least amount of time required to finish each task with the least amount of delay.
Cost Analysis
The entire idea of cost of production or definition of production cost is applied corresponding or we can say that it is related to investment or money cost. Money cost or investment refers to any money expenditure which the firm or supplier or producer undertakes in purchasing or hiring factor of production or factor services.
Inventory Management
Inventory management is the process or system of handling all the goods that an organization owns. In simpler terms, inventory management deals with how a company orders, stores, and uses its goods.
Project Management
Project Management is all about management and optimum utilization of the resources in the best possible manner to develop the software as per the requirement of the client. Here the Project refers to the development of software to meet the end objective of the client by providing the required product or service within a specified Period of time and ensuring high quality. This can be done by managing all the available resources. In short, it can be defined as an application of knowledge, skills, tools, and techniques to meet the objective of the Project. It is the duty of a Project Manager to achieve the objective of the Project as per the specifications given by the client.
Timber Solution Ltd., a communications equipment manufacturer, recently fell victim to a fraud scheme developed by one of its employees. To understand the scheme, it is necessary to review Timber Solution’s procedures for the purchase of services.
The purchasing assistant is responsible for ordering services (such as repairs to a photocopy machine or office cleaning) after receiving a service requisition from an authorised manager. However, because no tangible goods are delivered, a receiving report is not prepared. When the Accounting Department receives an invoice billing Timber Solution for a service call, the accounts payable assistant calls the manager who requested the service to verify that it was performed.
The fraud scheme involves Johnson Parry, the manager of plant and facilities. Johnson arranged for a company, Bamber Services, to be placed on Timber Solution approved supplier list.
On several occasions, Johnson would submit a requisition for services to be provided by Bamber Services. However, the service requested was not needed, and it was never performed. Bamber Services would bill Timber Solution for the service and then split the cash payment with Johnson.
Questions
- Explain what changes should be made to Timber Solution’s procedures for ordering and paying for services to prevent such occurrences in the future.
Timber Solutions Ltd. is expanding and needs to hire more personnel in the accounting office. Leena Barker, the chief accounting officer, knew that her cousin Rose was looking for a job. Leena offered Rose a job as her assistant. Leena will be responsible for Rose’s performance reviews and training.
Questions
- List some problems with the proposed personnel situations in the accounting department.
What suggestions would you make to improve internal control at Time Solutions Ltd
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