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Accounting Information system Assignment on Fruito



You have recently started as the Financial Accountant in a new organisation, 'Fruito'. Fruito is a local fruit shop which has both a retail shop selling to the public and distributes produce to other local businesses such as restaurants and hotels. Part of your role involves supervising the Accounts Payable department. After observing how the processes are undertaken, you have early concerns around Internal Controls with the ordering and receiving part of the expenditure cycle. After raising your concerns with the Chief Financial Officer (CFO), you are to undertake an initial internal audit of the process, specifically focusing on accuracy, completeness and validity. The scope of the investigation is to:
   •   Identify the risks faced by Fruito when ordering and receiving their stock (fruit and vegetables). What is the potential impact of each risk to Fruito?
   •   Recommend which Internal Controls should be implemented by Fruito. How do these controls mitigate the risks you have identified?
Prepare a summary of your findings for the CFO.

1000 words





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