Table of ContentsI. Introduction2II. The need of keeping effective accounting systems within Sprint Ltd31.1. Explain the purpose and use of the different accounting records i.e. Purchase Ledger, Stock Records(GRN), Nominal Ledger, Purchase Day Book, Cash Book etc., and comment upon the Managing Director, Mr. Phans final statement.3Charts of account includes Assets, Liabilities, Equity or fund balance, Revenues and Expenditures4Bookkeeping11The ledgers11Trial balance16Final accounts171.2 Explain the importance and meaning of the fundamental accounting concepts applicable in the above scenario.20Business entity21The importance of business entity concept21Money Measurement22The importance of the Money Measurement concept22Going concern22The importance of the Going Concern concept23Prudence/ Conservatism23The importance of Prudence concept23Materiality23The importance24Consistency24Accruals/matching24The importance25Realization25The importance25Disclosure25The importance25The importance261.3. Evaluate the factors which might affect the nature and structure of accounting systems at Sprint merchandising Company27Figure 1.328III. The management control systems of Sprint Ltd.312.1. Identify the relevant components of business risk (operational, financial, and compliance) in the system outlined in the above scenario31The different components of business risk31Operating risk31Financial risk34Compliance risk362.2 Describe and evaluate the control systems in place at Sprint Ltd. The control systems are applicable to both the accounting system, and the internal control system.432.3. Assess the risk of fraud within Sprint Ltd, and suggest methods for prevention and detection of fraud:48IV. Conclusion:54V. References:55Bibliography55

I. Introduction

As most of businesses have gone bankrupt because of the poor accounting system, having being aware, this report will therefore help Sprint Ltd to figure out the importance of effective accounting systems as well as how to control their internal system through the analysis of its management control.With the first purpose, the report will initially present about the importance of accounting records and its impact on the business. Besides, in this first session, the use of different accounting records is also identified. However, to ensure the accounting systems are compliance the standards, the report will introduce 10 fundamental accounting concepts so that Sprint Ltd can base on it and avoid misstatements in the assertions. Moreover, with the last part of the first session, the structure of Sprint Ltd will be attached so that the report can analyze how the company is operating as well as the importance of the support of computerized system in Sprint Ltd will also be presented.In terms of the second purpose, the report will focus closely on the internal control of the company by identifying the risks that can occur, namely operating risks, financial risks, and compliance risks. More specifically, with such risks, the report will present about the control procedures and 6 steps involved in auditing the internal control structures. Moreover, as most accounting scandals are from the frauds of employees and management, this report will therefore assist Sprint Ltd to identify how frauds can be occurred as well as the ways to prevent and detect them in the last session.

II. The need of keeping effective accounting systems within Sprint Ltd

1.1. Explain the purpose and use of the different accounting records i.e. Purchase Ledger, Stock Records(GRN), Nominal Ledger, Purchase Day Book, Cash Book etc., and comment upon the Managing Director, Mr.Phans final statement.

In the first part, this report will initially explain about the purpose of accounting records and its importance towards Sprint Company. But what is accounting records?According to Wikipedia, accounting records are all sources of information and evidence that are used in preparing, verifying and or auditing financial statements. Accounting records also includes documentation to prove ownership of assets creation of liabilities and evidence of monetary and non-monetary transactionsFrom this point, if the accounting records are poor, the data and information will not be recorded properly. Since then, it will affect the accuracy of journal, ledger, trial balance and the final accounts (which meaning will be explained later)Moreover, if the accounting records were not maintained properly, there will be less control on the budget. In particular, because the budget is prepared on the behalf of the past data and information, so when there is a problem on the previous records, it will affect the making of new budget, especially the incremental budget, which is based on the previous budget to set the increase in the new one. Therefore, if the previous budget is material, the new budget will have problem too. However, there is no risk to ZBB method as this method has no base and do not depend on any data or information from accounting records at all.Besides, based on the given information from scenario, the companys independent auditor will examine and test accounting records and source documentation as a part of the audit in order to substantiate the information that appears in the financial statements. Therefore, if financial statements are material, it will then definitely be founded by auditors and make it become more complicated as well as taking more time for auditing process.Furthermore, there is not only a negative impact on the auditors but other users as well. In particular, if there is 1,000 in Sales in this month, but the accountants make mistakes by working very fast and record that there is 10,000 instead of 1,000, then it will make the investors think that the company is making profit and there is no reason why they do not invest a huge money on this company to get more returns than other ones. For this reason, if the records are material, it will affect the decisions of many investors that probably cause the loss in their investments. Or if there is only 3,000 in debtor budget but it is recorded as 7,000, so the variance here will be 4,000. Since then, the shareholders may think that they can get extra 4,000 compared to the real one and may affect the decisions or options of them in terms of extending or cutting shorter the period of paying back or giving discounts for debtors. For this reason, if the accounting records are maintained wrong, it will cause many negative and unexpected impacts on businessLets assume that there are many different types of accounting records in Sprint Company including Charts of accounts, Journal, Bookkeeping, Ledgers, Trial balance and Final Accounts. Charts of account includes Assets, Liabilities, Equity or fund balance, Revenues and ExpendituresAssets are when owners invest their money and on the behalf of their investment, they have rights to receive something. There are two types of assets including fixed assets and, which also known as non-current assets, and current ones. In terms of fixed assets, there are two sides including tangible and intangible. Tangible assets include plants and machines, building, etc. Intangible assets include goodwill, brand name, copyright, etc. Current assets, which are used for day-to-day expenses, including closing stocks, debtors and cash or any account receivable, which are easily converted into cash[footnoteRef:2] [2: Whenever we need cash for urgent issues, cash at hand and cash at bank will firstly be put into consideration because they are already under the form of cash and can be used whenever being needed. The second consideration is debtor. Indeed, Sprint can ask their debtors to pay their money pack because they have obligation to pay and there is legal document between the two parties to ensure this obligation. Finally, the least priority for generating cash is to sell closing stock because it is not easy to find and invite customers in a short time. For this reason, it will take time for the company in this generating-money way. Thus, the assets, which are liquidity, will exclude closing stock (Liquidity asset = all current asset closing stock)]

Liabilities are the obligation that the company has to pay including the account payable, loans, and creditors, retain earnings or provisions, etc.Equity is shared capital, which is paid to shareholders under the form of dividends and called as cost of equity. Fund balance is the amount of Total asset minus total liabilities. If Sprints asset is greater than liability, this balance is positive. Otherwise, it is negative. Revenues are the companys income and expenditures are the cash outflow of them.

Lets look at the below diagram for the summary of Chart of accounts.

Sales, purchases and returns daybooks recording data Source documents are listed in the appropriate book Details are entered in relevant columns Figures are totaled on a regular basis Lay out Includes: Date Document number Personal details Goods value Sales tax amount Total invoice/credit note value Daybooks use of analysis columns: Extra columns cater for wide range of nominal ledger a/cs, e.g. in the sales day book, extra columns for different types of product sold. Analysis column headings include, in the purchase day book: Date Document number Details Purchases Stationery Heating and lighting Motor expenses Sales tax amount Total value Sales day book sample: The cash book: Records money paid and received Book of prime entry and also part of the ledger. As well as receipts on left (DR.) and payments on right (CR.), discounts columns may also be shown. Often show a range of analysis columns that are totaled on a regular basis.Layout includesReceipts Date Details Receipts from customers Other revenue Sales taxTotal receipts Payments Date Details Payments to suppliers Petty cash transfer Wages Sales tax Sundry Total paidCash book sample(http://nehsfbla.wikispaces.com/Accounting+II n.d.)RECORDING AND POSTING TRANSACTIONS General Journal: is the prime book that is prepared in accounting records. In journal, it will record all daily entry, transaction or actions of buying and selling. Meaning to say, whatever happened at first in business, Sprint Ltd needs to prepare it in journal?

For example, if Sprint Ltd sold 4,000 in goods in cash sales to a customer and purchased office supplies on credit at the price of 5,000 on March 3rd, the accountant will record these two transactions into the journal as follows:JournalMarch 3rd Dr. Cash 4.000 Cr. Goods 4.000Dr. Goods 5.000 Cr. Account payable 5.000The above journal is the simple form of it. Besides, Sprint Ltd can also prepare another form of journal as follows:

Head BuyerAccount payable 4.000Goods 5.000Purchased goods2Goods 4.000Cash 4.000Sold goods1March 3rd

BookkeepingBookkeeping in the context of a business is simply the recording of financial transactions. Transactions include purchases, sales, receipts and payments by an individual or organization (Wikipedia).For example, if Sprint has proper recording system, they need to record all kinds of records, transactions. Does matter the company paid electricity bills or bought plant and machinery, they must keep the record in the relation of every buying and selling transaction.Company needs to keep the records in the relation of each and every transaction. The ledgersLedgers are the accounts that every transactions must end up here. There are three main types of ledger including Purchase ledger, Sales ledger and General ledger: Purchase Ledger: Purpose and Use Purpose: This contains all the "T" accounts of all the credit suppliers. Each "T" account here will give the firm the exact amount payable to each supplier A purchase ledger records all purchases made by your business. It helps you to monitor: your business' outgoings, how much money you owe (creditors) at any one time. In addition, it gives you a record of your most regular suppliers and how much you have spent with each.

Sales ledger is the ledger that records the sales Sprint has made, the amount of money received for their goods, money owned by debtors at the end of each month. (slide 2014)Lets take the above transaction of selling goods from journals to transfer to the sales ledger as follows:Sales Ledger sample: Sales Journal and Related Ledger Accounts

General Ledger/ The nominal ledger: This contains real accounts (assets, liabilities, and capital) and nominal accounts (revenue and expenses). Real accounts are maintained over several accounting periods, but nominal accounts are closed each period. There will be no personal "T" accounts for customers or suppliers in the general ledger. Nominal ledger:There are three main types of this account including Real account, Nominal account and Personal account.

Account that related to operations such as Debit, Credit, Sales, Purchase, Cash, Account receivable, Account payable

Any account by name of the company or a person

Account for fixed assets or non-current assets

Figure 1.1

In terms of real account, it is maintained over several accounting periods, but nominal account are closed each period

Relationship of Sales Journal, General Ledger, and Accounts Receivable Subsidiary Ledger and the Posting Procedure

Relationship of Single-Column Purchases Journal to the General Ledger and the Accounts Payable Subsidiary Ledger

Relationship of the Cash Receipts Journal to the General Ledger and the Accounts Receivable Subsidiary Ledger(http://nehsfbla.wikispaces.com/Accounting+II n.d.)

Relationship of the Cash Payments Journal to the General Ledger and the Accounts Payable Subsidiary Ledger(http://nehsfbla.wikispaces.com/Accounting+II n.d.) Trial balanceThis is a list of all ledger account balances at a particular date. The purpose of preparing trial balance is to ensure all credit and debit in the account will be equal because when the accountant put a debit in an account, will also put a credit in an another account. Therefore, when put them all in a trial balance, the total number of debit and credit will be the same.Lets assume that the below form will be the trial balance of Sprint Company

Sprint Ltd. Co.(Lecturer 2015)It can be seen that from the figure above, the first column is the code of each transaction. Besides, although there are only 4 transactions in the credit side while there is 7 transactions is debit side, the total number of the both side is still equal. However, if it is not, the accountants should check again all the ledgers. For this reason, with the help of trial balance, the accountants can know whether they had any arithmetic mistake or not. Final accountsThere are three main types of final account that this report will focus on including the Balance sheet, trading account and Profit and Loss account. Trading account is related to direct costs that incurred in Sprints manufacturing process and Profit and Loss account is related to indirect costs (Debit side is expense and Credit side is for income and gain). Therefore, Gross profit, which is belong to Trading account will be transferred into Profit and Loss account after the accountants minus the indirect cost and become the Net Profit. After that, this Net profit will be then transferred into the Balance sheet. However, if there is the Net Loss after the accountants minus all indirect expense, instead of continuing to use cash, Sprint should better use its capital because it is easy to cover the equity than debts. Indeed, if the company use cash, the current asset will less than current liability, which cause a negative impact on working capital. Therefore, if Sprint Company uses capital, its liabilities will be partly transferred into assets and make it becomes equal.[footnoteRef:3] [3: For example, there is -30.000 in the Net Loss of Sprint. If the company uses 30.000 in their capital, which is regarded as current liabilities, to cover the loss, then this loss (30.000) will be transferred to current assets on Asset side of the Balance sheet and make the total now will be the same.]

Furthermore, after trial balance and before the final accounts, there is an adjustment that record the transaction occurred after the accountant finish preparing the trial balance. For example, if Sprint had paid 8,000 for the rent expense in advance, which will be benefits in the future, the treatment for adjustment will be as follows: Dr. Prepaid expenses account 3,000 Cr. Rent expense account 3,000This transaction will have two affects. The first affect will be shown in the asset side in the Balance sheet because this prepaid expenses (3,000) are not be used at present, so it is regarded as the asset for the company. However, it is the indirect expense of Sprint. For this reason, it will be shown on the Debit side of the Profit and Loss accountSimilarly, depreciation will also have the same treatment as follows:

Dr. Depreciation account 3,000 Cr. Asset account 3,000In particular, as it is the expense for Sprint when its assets decrease the value, it is regarded as indirect expenses. For this reason, if there is 5,000 in the depreciation per year, it will be shown on the debit side of Profit and Loss account. Besides, if the depreciation increases, it will cause the decrease in the asset of Sprint. Therefore, depreciation will also be shown on the asset side of the Balance Sheet.To sum up, this report will draw a diagram that demonstrates the accounting cycle as follows

Figure 1.2Mr. Phan final Statement: Provide instant reports on stock evaluation, profit and loss, customer accounts and payroll and sales analysis Allowing faster adjustments in Mr. Phan business strategy. Anyone can handle with training improve inventory control and payment collection update some records automatically eliminate the human error factor, Many types of useful reports can be generated for management to make decisions (Stock valuation, Sales analysis, Budget analysis and variance analysis, GST/VAT returns , Payroll analysis.

Facts to remember computer based accounting:It is exactly the same as manual accounting and same name as recorded in traditional written records. Computerised accounting still uses the familiar ideas of day books, ledger accounts, double entry, trial balance and financial statements. The principles of working with computerised sales, purchase and nominal ledgers and exactly what would be expected in the manual methods they replace.1.2 Explain the importance and meaning of the fundamental accounting concepts applicable in the above scenario.

Accounting is the language used by businesses to communicate their financial information and performance to interested parties. In accounting, there is a set of concepts that it is based on. Accounting has a set of twelve fundamental concepts that form the basis of all accounting; these concepts are called the General Accepted Accounting Principles (GAAP), which is America accountings standard. These concepts help to explain the meaning of all the figures that are found in the financial statements of a company.However, on the behalf of Sprint Company, this report will present only 10 fundamental accounting concepts including Business Entity, Money Measurement, Going concern, Prudence/Conservatism, Materiality, Consistency, Accruals/matching, Realization, Uniformity, Disclosure.

Figure 2.1 Business entityAccording to WebFinance, Inc., 2013, the accounting records reflect the financial activities of a specific corporate entity, separate and distinct from the people who finance it or work in it. Meaning to say, business and the owners are different and cannot combined togetherHowever, if a shareholder takes away 5.000 in cash or goods worth 5.000 for his/her personal purposes, this withdrawal of cash/goods by the owner from Sprint is his/her private expense and not an expense of the business. It is termed as Drawings The importance of business entity conceptThis concept helps in ascertaining the profit of Sprint. Indeed, there are only their business expenses and revenues are recorded while all the private and personal expenses are ignored. Therefore, it facilitates the recording and reporting of business transactions from the business point of view like what the above example indicated. Money MeasurementMoney Measurement Concept in accounting, also known as Measurability Concept, means that only transactions and events that are capable of being measured in monetary terms are recognized in the financial statements (Accounting Simplified.com, 2010-2013)Meaning to say, something that can measure into money can be written in the accounting records. Otherwise, it is not written in accounting records such as emotion, feeling, intuition, etc. However, according to the Accounting Simplified.com, 2010-2013, any material transactions and events that are not recorded for failing to meet the measurability criteria might need to be disclosed in the supplementary notes of financial statements to assist the users in gaining a better understanding of the financial performance and position of the entity. Lets look at Appendix 1, p.52 for this example.[footnoteRef:4] [4: Moreover, as goodwill is not measured into money and recognized as an asset in the balance sheet. However, according to IAS 38 Intangible Assets and ASC 350 Intangibles , they permit purchased goodwill will be recognized as an asset in the financial statements since the cost of purchased goodwill is usually determinable objectively as the amount of consideration paid in excess of the value of other identifiable assets of the acquired business. (Accounting Simplified.com, 2010-2013]

The importance of the Money Measurement conceptThank to this concept, it guides the accountants what to record and what not to record. Besides, if all the business transactions are expressed in monetary terms, it will be easy for the users to understand the accounts prepared Going concernGoing concern is a basic underlying assumption in accounting. The assumption is that a company or other entity will be able to continue operating for a period of time that is sufficient to carry out its commitments, obligations, objectives, and so on. In other words, the company will not have to liquidate or be forced out of business in the foreseeable future (AccountingCoach, LLC, 2004-2013). Besides, according to AccountingExplained.com, 2011-2013, the auditors of the company determine whether the company is a going concern or not at the date of the financial statements. Lets look at Appendix 1, p.52 for this example The importance of the Going Concern conceptFrom the above example, it indicates that this concept provide a great help to the investors, because, it assures them that they will continue to get income on their investments if the business will keep going on Prudence/ ConservatismPrudence is a key accounting principle which makes sure that assets and income are not overstated and liabilities and expenses are not understated (AccountingExplained.com, 2011-2013). It is because the company cannot record their profit and income in advance once they cannot ensure. Indeed, if Sprint records 45,000 in their profit in advance, but the actual figure is only 30,000, it will have many negative impacts on their business. However, they can record only expenses beforehand. For example, if they recorded a huge expense for the new project is 50,000, then they will make efforts to save as much as cash to have sufficient expenses for this project. Indeed, does not matter the actual expenses is less than or not, because if it is less than the recorded figure, it is good for Sprints business as they can save this extra amount for further expenses. The importance of Prudence conceptAs the above example showed, applying this concept help Sprint Company to not overestimate its revenue that may cause many bad impact on decision making process MaterialityThis accounting concept states that whenever the accountants prepare an accounting record, the records should not have any mistake.[footnoteRef:5] [5: For example, when there is a material in sales record that instead of writing 10.000 into sales ledger, Thanh Dungs accountant make mistake and add one more unit so that the figure becomes 100.000. Since then, it will affect the decision of users badly.]

However, there is immaterial error which so small, can be accepted as it does not have any big impact on the decisions of those who using this information. For example, if the value of a machine is 2,000 but is entered into the book at 2,000.001, it is still fine. The importanceBy applying this concept, there is not any material that will incurred in the accounting record and cause the bad affect to the users decisions ConsistencyThis accounting concept means that if the company had chosen its most appropriate accounting method, they should consistently apply it during the financial year[footnoteRef:6] [6: For example, if in the beginning of April, sprint chose FIFO method for stock evaluation, the company must choose this method for the whole of its accounting year instead of changing to LIFO or AVCO method after that.]

The importanceBy ensuring this concept, the auditors can easily compare Sprints financial report period to period without confusing. However, Sprint Company can change their accounting method if it can improve their reported financial results, but the company should fully document its effects, and include this documentation in the notes accompanying the financial statements (AcountingTools, 2013) Accruals/matchingThis accounting concepts stated that revenue is recorded when it is earned, not when it is received. Similarly, the expense is recorded when it is incurred, not when it is paid. For example, in terms of credit sales, customers become Sprints debtors and their income even when they have not paid the money yet The importanceAccrual concept helps in knowing actual expenses and actual income during a particular time period. It helps in calculating the net profit of the business as whenever indirect expenses incurred, they will all be recorded and transferred to Profit and Loss account RealizationThis concept is also known as revenue recognition principle, which is the application of the accrual concept above. Realization concept means that Sprint can record its sales once their furniture is sold and the ownership is changed. Therefore, when the showroom sold a sofa on credit, for example, although the company do not receive the money yet, the accountant also record The importanceAs this concept also means that the accountant just records the sales for showroom when the furniture is delivered to customers, so it provides that the transactions should be recorded only when goods are delivered to the buyer. DisclosureThis concept is relevant to the materiality concept. It stated that the company needs to inform to the users whatever come to the company even it is small or big by either writing it down in the financial statements or in the notes to the financial statements. If not, it will affect the users.[footnoteRef:7] [7: For example, if Sprint makes loss at about -25.000 in this financial year, but the accountant writes 25.000 down into the profit, the investors will have a wrong decision towards their investment and will cause the loss to the investors]

The importanceThis concept helps the users can identify whatever Sprints information that will have an impact on them. Since then, by applying the disclosure concept, the investors can have a clear understanding of the current situation of Sprints business UniformityThis concept means that the companies that operate in the same industry should follow the same accounting method. Therefore, as Sprint Company does business in manufacturing industry, they need to follow the same accounting method with other ones However, if Sprint wants to do business in bank sector in the forthcoming period, they need to follow other accounting method that different to what they are using now. Indeed, if the bank lends money to the companies, the companies will become debtors of the bank while banks will become creditors of the company. Therefore, the two parties are opposite in the position and obviously cannot use the same accounting method The importanceWith this concept, the business within an industry can compare their performance together. Besides, like the above assumption, with the help of the uniformity concept, Sprint can know what accounting method they can apply in case of operating in bank sector.

1.3. Evaluate the factors which might affect the nature and structure of accounting systems at Sprint merchandising Company

Sprint Ltd, a company that supplies electrical components to a variety of corporate customers. The company achieved an annual sales turnover of US$60 million in the last financial year 2007. Since founded in 1998, Sprint Ltd has grown to a 200 strong workforce located in various parts of Asia Pacific Region. Being a multi-national company (MNC), routine tactical decisions are decentralized in the various branches in Asia Pacific Region, while major strategic decisions are retained at the companys head-quarter (HQ) in Singapore. You have been provided with the following information about the requisition, purchase, good received, invoice receipt, and cheque payment system. Your enquiries about the system indicate that there are no relevant procedures other than those described; all records are manual.

BottomManagementLine AuthorityStaff authorityMiddleManagementTop Management

Figure 1.3The above merchandising structure is the assumption of Sprints organizational structure. It can be seen that there are three levels of management in the company including top, middle and bottom management. Lets look at Appendix 2, p.54 for more details about the explanation of this structure and three types of authority in SprintAfter presenting about structure in the Sprint Company, this report will move to the next part to mention about the most common equation of accounting system as follows:Assets = Liabilities + EquityThis equation had been mentioned under the form of a big diagram in the first part of this report. However, in order to have a more understanding about the interrelationship between each element. This report will give a clear example in Appendix 1, p.53Next, in the third part of this session, this report will present two types of accounting systems that can have an influence on the nature and structure of accounting system including Manual and Computerized systemFormal systemManual Computer Based Manual information system is the system that is recorded by hand with the use of paper and pencil Computerized Accounting System is the system that based on computer hardware and software technology for processing and disseminating informationWith computerized accounting system, whenever the company use, it cannot be lacked of one of elements in the following figure

Figure 1.4 (SlideLecturer 2015)

Indeed, without one of them, it cannot serve for the purpose of accounting recordMoreover, this report will present about the process of Computerized Accounting System in Appendix 2, p.56Indeed, using computerized accounting system will bring more benefits for Sprint than manual system. Lets look at Appendix 1, p.52for more detailsIn addition, there are many other factors that can have an impact on the accounting system of sprint. In particular, the operations such as selling, purchasing, debtor, creditor, etc.[footnoteRef:8] [8: For example, when Purchasing Department orders 4.000 raw materials, they must pay 4.000 for suppliers. It is when cash outflow will appear. Similarly, when Marketing Department sold a type of furniture at the price of 5.000, the accountant must record this 5.000 into their book.]

From that point, it can be seen that whatever transactions within Sprint, they also need to record and put them all into financial report. However, these financial reports must be true and fair. If it is not, it will affect the users. [footnoteRef:9] [9: For example, if there is only 2.000 in the expense is recorded instead of 4.000, the users may think that the company had paid less expense and they will have more expenses for other operations. By this way, it will cause the negative impact.]

III. The management control systems of Sprint Ltd.

2.1. Identify the relevant components of business risk (operational, financial, and compliance) in the system outlined in the above scenario

The different components of business riskWhenever doing a business, there are many risks that ask companies to confront. Sprint is no exception. But what is business risk? Business risk relates to any action or event that can give negative impact on users investment such as making them cannot achieve their objectives or getting high return. However, business risk does not simply relate to users only, it is also about internal aspect such as cash flow as well. Indeed, when there is not sufficient cash to pay for expenses, the company will be more likely to fail.There are three types of business risks including Operating risk, Compliance risk and Financial risk. Operating riskOperating risk can be defined as the chances of errors or mistakes being made within the operations of the business (Lecturer slide, Business risk, ppt.7)For example, when Sprint bought a huge machine at the price of 5,000 without testing it carefully, it therefore causes the problems for manufacturing process. This mistake is considered as the risk in operation activities of Sprint. Not only that, in terms of abnormal loss, if a worker in the factory cut carelessly the woods that make it cannot be used anymore, this loss can also be regarded as operating risk for Sprint.Moreover, operating risk is the risk of monetary losses resulting from inadequate or failed internal processes, people or systems or from external events (Basel Committee). Monetary losses mean the losses that can be converted into money. With the above example, if the machine is stopped functioning, this loss will then be calculated by the price of this machine (5,000). Moreover, external events here mean the natural disasters. Therefore, in case Sprints factories are damaged by heavy storms that make the two factories are out of electricity, it will result in the loss of manufacturing capacity of Sprint.In addition, this operating risk is also related to internal problems such as employee fraud and product flaws. In terms of product flaws, if Sprints factories sell fake goods that are completely not produced by the company, the customers will complain and then cause the loss from such sales returns. Therefore, product flaws are also regarded as the operating risk for the company as well. Besides, in terms of employee fraud, based on the scenario, it can be seen that the head foreman conspired with a driver of suppliers to accept the short deliveries compared to the quantity of purchase orders. With this extra amount of goods, the driver illegally sold them and shared the returns to Sprints foreman. With such fraud, it can be seen that Sprint has experienced the operating risk. Therefore, in order to prevent this issue, the company has better to give serious punishments to this foreman such as deducting a huge amount in his monthly salaries or even firing him. Moreover, Sprint should choose more carefully its suppliers. Indeed, it is better for them to choose the close relationship suppliers that they have cooperated for a period of time before and avoid to change regularly new suppliers as the company could not be able to build trust and do business with strangers even when they supply good quality products or offer low prices compared to others. Therefore, in these cases, trust should be put in priority.Furthermore, this report also names some company that experienced operating risk. In particular, with the accounting scandal of Tyco Company in 2002, the both CEO and CFO stole $150 million and inflated company income by $500 million. In order to do that, both of them siphoned money through unapproved loans and sales fraudulently stocks to the market. Then, this $150 million was smuggled out of the company disguised as executive bonuses. Unfortunately, SEC and Manhattan D.A investigations uncovered questionable accounting practices, including large loans made to Kozlowski, the CEO. Then, both CEO and CFO of Tyco were sentenced to 8-25 years in prison. (Accounting-Degree.org)

Figure 2.1 Tyco Scandal(http://vetop.in/top-10-accounting-scandals/)It can be seen from this scandal that in order to avoid such frauds, Sprint had better appoint special persons that responsible for internal auditors to check their properly internal control system to identify whether there is any fraud arise or not. If yes, it indicates a weak internal control system with a great deal of frauds and vice versa. Financial riskFinancial risks are the risks of incorrect payments being made or not all due receipts being collected (Lecturer slide, Business risk, ppt. 9). In terms of incorrect payments, for example, instead of paying 3,000 to creditors, Sprints accountants make mistake and write 30,000 to the Statement of Financial Position. This 30,000 is considered as a financial risk for Sprint. Besides, in terms of receipts not being collected, for example, when selling a set of office furniture at the price of 1,500 on credit for a company, and this company was gone into bankrupt just after a short period of time of this purchase that make Sprint cannot receive this 1,500 back anymore. Therefore, this 1,500 is regarded as bad debt in financial risk for the company.Besides, if Sprint does not have proper payroll control systems, they might pay salary for dummy employees. For example, if the HR managers ask Finance Department to supply money to pay for 500 employees salaries while there are only 450 employees in practice. Since then, there are 50 salary packages extra and will be put in this HR managers pocketIndeed, based on the scenario, Sprint announced a 10% increase in executive salaries and the performance motivation scheme such as share options, pay schemes for all directors. From that point, it can be seen that the company does not have a proper payroll system to measure employees performance. Indeed, it is better if they establish incremental payroll system so that employees can know that which specific period of time their salary will increase and at which percentages.[footnoteRef:10] [10: For example, if an executive person has worked for the company for 5 years, there salaries will increase to 20% and if he/she has worked for 10 years or more, then his/her salary will be increased by 30% together with other bonus scheme. By this specific method, Sprint can avoid HR manager to make some frauds in salary packages that make them have to pay for more extra costs.]

In addition, financial risk can also be the loss in the return of shareholders when they invest in the company has debts so that they cannot have sufficient cash flow to meet its financial obligation.With this problem, there is a real case of Enron Scandal in 2001. In particular, the CEO Jeff Skilling and the former CEO Ken Lay had kept a great deal of huge debts off the Statement of Financial Position and then, year-to-year, many debts were still hidden illegally until the company declared to go bankrupt as they cannot have enough efforts to pay for their creditors anymore. This bankruptcy resulted in the loss in shareholder sat $74 billion as well as thousands of employees and other investors lost their retirement accounts. Unfortunately, the former CEO, Lay died even before the serving time is finished. However, Jeff Skilling got 24 years in prison.

Figure 2.2 Enron Scandal(http://vetop.in/top-10-accounting-scandals/)In this case, it can be seen that the problem of Enron is not have proper internal auditing system. Therefore, in order to ensure every transaction even small or big is disclosed in Sprints financial statements without any hide, similarly, the company should also appoint special internal auditors to check all these financial records properly. By this way, it will not have any unexpected financial risk like Enron experienced. Compliance riskThis is the risk when the company does not comply all of the legal requirements given by the government. In practice, there is a scandal of Raffles Vietnam (RITC) in 2011 that related to this compliance issue. In particular, this college advertised that they are an organization belonging to an Australian authorized organization and offer many courses in relation to designs, commerce, hotel and hospitality, etc. that Vietnamese students can directly study this Australian program in Vietnam without going abroad. However, although they are actually belonged to this international organization, they completely have no rights to operate in Vietnams education and give such Diploma degrees here. Indeed, they do not have any legal document to prove for this right. Therefore, RITC was closed after that, which causes many losses for their students, especially newly and nearly-graduated ones. Because there is no company will give them a job after this scandal.(Dong 2001-2011)It can be seen that the compliance of regulations, rules and policies of the government is extremely important if Sprint does not want to go down. For this reason, the role of governance should be prioritized. Indeed, governance is a group of people in Sprint that control over the company and give instructions and directions so that they can help the company can be able to comply governments regulations. Besides, as there are not easily-understood auditing standards only, there are many difficult ones that cause the misunderstanding. Therefore, with the help of government, they will transparent such rules and the company actions.In addition, behind these mentioned accounting scandals, this report will also present about one of the three biggest scandals in the world, which submitted the largest bankruptcy filing in United States history in the year of 2002, namely, the WorldCom. In particular, the WorldCom was plagued by the rapid erosion of its profits and an accounting scandal that created billions in illusory earnings. According to CBS News, WorldCom took almost $3.8 billion in cash flow off its books in the first quarter of 2002, wiping out all profit during those times. By doing this, it caused the improper accounting record in the expenses. Besides, the WorldCom inflated its assets to more than $107, far surpassing those of Enron. As a result, the telecommunications company said it had fired Chief Financial Officer Scott Sullivan, and accepted the resignation of senior vice president and controller David Myers, after an internal audit found improper accounting of this $3.8 billion in expenses over five quarters. Moreover, the misstated billions are also very bad news for ordinary WorldCom workers as there are 17,000 of them were be fired.Figure 2.3Worlcom Scandal(http://vetop.in/top-10-accounting-scandals/)As the Worldcom is one of the well-known telecommunication companies in the world, because of their reputation, it is hard for them to reveal their under-performance while other competitors are operating effectively. Therefore, this fraud is likely to be sympathized. However, it is not accepted in the aspect of ethic. Therefore, even when the company is having too much expenses compared with profit, it is still better for them to disclose each and every every information to protect the rights of users and their investment.After discussing about 3 types of business risk and some real cases about accounting scandals, based on scenarios information, in practice, Sprint also face other types of business risk as well. Particularly, they have been affected badly by the current economic crisis. For this reason, the level of production is decreased, which cause the underutilized retail capacity. Since then, their revenue is decreasing while their costs are ramping up rapidly. As a result, the working capital of Sprint is mismanaged because there is more creditors arise making the current liabilities more than current assets. With such bad situation, the company is likely to incur in debts if their working capital keeps going in this way.Therefore, in order to reduce the problem, Sprint can offer some discounts, promotion schemes or attractive offers to its customers during off season. Indeed, in current economic situation, it makes the decrease in the potential development of real estate. Therefore, there are not many projects are built. For this reason, the demand for new furniture is also affected negatively. From that point, in this difficult time, Sprint should better to offer more sales in their products that range from new customers to loyal customers. It means that the more loyalty customers have, the more discounts they receive. In order to do that effectively, the company should monitor the sales and inventory condition carefully so as to offer appropriate promotions to customers. Moreover, in order to save more costs for this hard situation, the accountants should design the budgets on the behalf of costs all over the time. [footnoteRef:11] [11: For example, if they predict that their costs in the future will be 5.000, then they will set the budget at this amount so that they will try to meet this budget by minimizing their costs and not letting them to excess this 5.000.]

Moreover, Sprint currently has problem with their inventory accounting software. This problem has resulted in the software does not follow the accounting standard of Revenue Recognition as sales orders getting booked as sales before delivery. Besides, there are incorrect deliveries as purchase orders getting booked as costs at random dates. In this case, as the deliveries are wrong, the costs will be increased because the company must pay money for another right delivery to right customer as well as giving them discounts to compensate this late delivery and preserve the goodwill. From that point, it makes the increase in their cash outflow in this tough market. Therefore, the problem will then put many pressures into the profitability of Sprint.With this software problem, Sprint had better integrate its inventory software with its financial and operational transactions so that staffs have not to input orders manually and make mistakes. Besides, when installing software, the company should provide training course for their users so that they can utilize this technology effectively and professionally. Moreover, the inventory accounting system should be monitored by internal audit department so that there is not any wrong in revenue recognition anymoreBefore discussing about the role of auditors, this report will present a diagram to introduce about two types of auditors as follows:

ShareholdersDirectors

AppointAppoint

ShareholdersShareholdersFigure2.4There are two types of auditors including internal and external auditors. Internal auditors are appointed by directors to check the accountants works and external auditors are appointed by shareholders to check whether there is any hidden thing in financial statements that director illegally hide. Therefore, external auditors will be responsible for checking the financial statements and give opinions while internal auditors are responsible for Sprints internal control systemto check whether company is doing right or wrong, then inform to the manager. However, there are two types of external auditors opinion including Qualified and Unqualified opinion. Qualified opinion indicates the financial statements of Sprint do not contain any material or the company does not qualify to have materials. By contrast, unqualified opinion means the company qualifies to have materials in their financial statements.Because this part of the report focuses on the business risks, internal auditors will therefore be discussed deeply in the following part as follows:In terms of the role of internal auditors, there are 3 main roles including identifying the risks, determining the company policy and implement strategy. Lets look at Appendix 2, p.57 for more detailsThere are three types of risks including Accept risk, Reduce risk, Avoid risk and Transfer riskAccept risk is the risk that Sprint can live with it and accept it because its impact is not much. For example, in this dozen of real estate situation, in order to attract more customers, Sprint decides to continue designing and producing more new products even it costs the company a number of amounts of money to do researches before launching. However, because the company thinks that this risk will not much as it will lead to their improvement with the diversity of product ranges and competitive advantages compared with other rivals. Therefore, they accepted it.Reduce risk: With this type of risk, internal auditors can utilize systems or process to protect this risk [footnoteRef:12] [12: For example, with the risk of inventory that make the deliveries go wrong, Sprint can integrate the inventory software to fix the problem and reduce it]

Avoid risk: this is the risk that the company will choose not to involve in[footnoteRef:13] [13: For example, when Sprint is invited to buy shares of another company, but they think that this investment will cause them many risks and even cause them the loss in the current economic downturn. In this case, Sprint can decide to avoid this risk by not becoming shareholders of this company]

Transfer risk: this is the risk that the company can transfer to another party [footnoteRef:14] [14: For example, when buying a machine with a great deal of money, Sprint is afraid that there will be many risks for them with this huge asset. In this case, they can buy the insurance for this machinery and transfer the risk to this insurance company]

In addition, in order to minimise the risks, Sprint can use corporate governance, which is the system by which companies are directed and controlled [footnoteRef:15] [15: Meaning to say, with the help of Corporate Governance, Sprint can know what to do and what not to do. Besides, governance will inform the company to comply which governments regulations as well as which risks are arisen currently. In particular, with the help of 3 key committees including Cadbury Committee 1992, Greenbury Committee 995, Hampel Committee 1995 and Trunbull Committee 1999, shareholders can be told how Sprint can work in the right ways and minimise the fraud. Indeed, fraud is a very bad problem. Because the more fraud, the less finance. Therefore, auditors should be seriously responsible for checking and finding the frauds in companys account. To do this, each transaction must be made timely and disclosed (Principle 5) as well as the remuneration should be fair (Principle 7) because the salary scheme of Sprint is not proper.]

ShareholdersShareholdersMoreover, in terms of the solution for business risk, namely, risk management, there are basic process steps as follows

Figure 2.5(slide, Business risk 2015)In the first step, Sprint needs to understand which kind of industry they are operating. Then, they need to identify which stakeholders will be involved in this impact. With the help of their stakeholder, they can identify whether there is any risk will be arisen in the future or not. However, in this step of identifying risk, it should involves three level of managements as follows

Figure 2.6(slide, Business risk 2015)After top, middle and bottom management identified the risks involved in their works, they will rank such risks by 4 types of risk category including Accept risk, Reduce Risk, Avoid risk and Transfer Risk. Then, risks will be treated and considered about its priority. To support this step, there are the helps of resources such as human, financial and technical supports to help Sprint minimize this risk. Finally, in order to know whether their applied strategy is working effectively or not, they need to monitor and review this process.2.2 Describe and evaluate the control systems in place at Sprint Ltd. The control systems are applicable to both the accounting system, and the internal control system.

Accounting Control system of Sprint LtdInternal controls are systems and procedures designed to ensure that all employees perform their duties ethically and honestly in Sprint Ltd. On the other hand, accounting controls deal specifically with the integrity of internal financial information and the accuracy of financial reports of Sprint Ltd provided to outsiders. Establishing effective accounting control procedures early in Sprint Ltd. small business helps to create a culture of ethical financial management. Cash control, separation of duties, documentation, information security, Audits. Internal Control objectives for the inventory system in Sprint Ltd. All inventory movements are authorized Inventory included in the statement of financial position physically exists All purchases and sales of inventory have been recorded in the accounting system Inventory records only include items that belong to the entity Inventory quantities have been accurately determined All purchases and sales of inventory are recorded in the correct accounting period Inventory transactions and balance are properly identified and classified in the financial statements Disclosures relating to classification and valuation are sufficientInternal Controls evaluation for the inventory system in Sprint Ltd. Pre-numbered documentation such as GRNs in use

StoreBuying DeptSupplier

purchase requisition form(requested & filled outby head storekeeper)(1)

(2)

purchase order (pre-numbered)(authorized by head buyer)(1)

(2)

URGENTLYpurchase order(NOT pre-numbered)(by head storekeeper)(1)

(3)(2)

In this case, when goods are required urgently the storekeeper raises the purchase order himself. Therefore, the company isnt authorized all not pre-numbered purchase order.Evaluation: Reconciliations of accounting records with physical inventoryRead Paragraph 3: Goods are received & checked by head storekeeper in terms of quantity (against the purchase requisition form (PRF) & quality.

no

any inferior goods are returned immediately to the supplier

quality

yes2 GRN keep in store until the remainder is received.no

quantity

yes1GRN + PRF keep in store numerically2 GRN

1GRN passes to Accounting dept

-> The requesting department is responsible for filling out a purchase requisition form. The Store department does not receive a copy purchase order or the invoice , so its employees dont know what should be received or its value. Meantime the company will avoid in case the storekeeper makes a urgent purchase order which is not pre-numbered. And ensuring all purchases and sales of inventory in system and are recorded. Thus, they are not tempted to steal any excess that may be delivered. In the case, where the quantity received is less then required quantity. The supplier has to require storekeeper to sign the remainder of the order is received.

All purchase transactions that occurred have been recorded

filing

PI + GRNunpaid invoice file (alphabetically)EnterPurchase invoice (PI) vs.GRN(by purchase ledger clerk)

Purchase daybook totals Nominal ledger Monthly

List of purchase ledger balancePurchase ledgerDetails

Monthly

Weekly

Reconciliations of inventory records with general ledger

cheque (relevant amount)+ statementYParagraph 5:

Statement(sent by supplier, received by purchase ledger clerk monthly)vs.purchase ledger balance (monthly) Accountant & Managing Director Cheque (a round amount)(Without reconciliation)N

After the check is cashed by the supplier, it is canceled by the bank and returned with the companys bank statement.In the case that the purchase ledger balance do not agree the clerk. If a check was filled out for the wrong amount or altered, it will show up on the bank reconciliation. Purchase transactions are correctly recorded in the accounting system

Paragraph 6:

All cheque(Listed by clerkReceived by cash book clerk)DetailsPurchase & nominal ledgerMonthlyCash bookweeklyDetails FilingRemover + staple PAID Paid invoice file(Alphabetical order)Paid Invoice file

Unpaid

Conclusion: in relation of test, need to show clearly that assessment level of control risk is or less than high. On the behalf of evaluation, we assume that risk is less than high. So we will use test of control in relation of Sprint Ltd. Inventory control system.Tests of control for the inventory system in Sprint Ltd: Review a sample of reconciliations to confirm they are performed and then reviewed by an independent person Observe and evaluate proper segregation of duties Review security systems in place Review procedures for counting inventory Review and test entitys procedures for taking physical inventory Discuss with inventory manager how inventory is valued Inspect documentation to confirm daily processing Review entitys procedures and documentation used to classify inventory Review entitys working papers for evidence of review

2.3. Assess the risk of fraud within Sprint Ltd, and suggest methods for prevention and detection of fraud:

Need to define, what is fraud with suitable example?Give an employee responsibility, and he may manage the resources under his control dishonesty. The incidence of financial fraud, including fraud in a computer environment, appears to be increasing fast. This trend, together with the increasing sophistication of fraudsters, creates difficult problems for management and for internal auditors.(Learning 2010)There are 7 Types of fraud such as ghost employees, miscasting of the payroll, stealing unclaimed wages, collusion with external parties, teeming and lading. In Sprint, based on the given information from scenario, this report will help the company to detect two cases of fraud and categorize it as follows:Firstly, this is a case of the head storekeeper, who responsible for checking deliveries of raw materials to make sure they have correct quantity and accepted quality. However, he has in collusion with a suppliers driver to stole goods of the company, then sell it and share the money together. In this case, there are four types of fraud occurred. The first type is the collusion with the third parties to make fraud, the driver. The second type is the teaming and lading, which is the misappropriate payments from trade receivables or to trade payables. Indeed, if a unit of goods is charged 30 and there will be totally 30.000 if the company purchase 1000 units. However, if the head storekeeper accepted the short deliveries, which means that the units of received raw materials will be reduced, he will then make changes in this payment. The third type of fraud is the Failing to record sales, because if the payments are changed, the sales also are changed as well. The last type is the Altering checks and inflating expense claims. This type is also caused by the change in payment, because if the invoice is changed, the checks will also be changed to be reasonable.Secondly, based on the scenario, head buyer, the chief purchasing officer, has had an arrangement with a stationery supplier that they will pay directly to him a commission on all orders placed by the company. He has sole responsibility for choosing suppliers and has ensured that all stationery order s have been given to this supplier. With this case, the only type of fraud is identified, which is called the collusion with the third parties, like the first case.This is the main fraud that occurred in Sprint. To prevent and detect frauds, this report will suggest some prevention and detection of fraud to help Sprint consolidate its internal control. This report will suggest a number of ways for the company to prevent and detect them. Firstly, Sprint needs to check regularly its stocks so that they can take control over their stock. Secondly, the management should review the gross profit of the company so as to know whether the concept of Revenue Recognition is ensured or not. Indeed, it is sometimes auditors may recognize that Sprint is writing wrong sales to attract more customers and increase its value in the perception of others. Therefore, to protect the right of users and ensure the concept of disclosure, Sprints management should better review its gross profit when Finance Department reports to them. Thirdly, to ensure that there is not only one person is responsible for only one duty, which will easily create chances for him/her to make frauds, Sprint needs to rotate the duties within a department. Indeed, not all employees are honest and dishonest in a department. Therefore, if there is only one person that works about cash and this guy is dishonest, for example, and if the company does not change this guy, it will create opportunities for him to make frauds without being detected. In this case, if the duties are rotated, the next person, which is honest one, may help the company find frauds which made from the previous one. Next, the senior management needs to check the works of the Finance Department by reviewing day-by-day or month-by-month with one-by-one account. Indeed, if Sprint applies the line authority and employees know who they will report to and how their works are monitored, they will work more careful and dedicated without making misstatements. Fifthly, the comparison of budgeted and actual stationer expense is also very important to detect frauds. Indeed, as from the scenario, there is a case of head buyer, who is in collusion with a stationary supplier to make fraud. Therefore, if the manager does not match their budged with actual, they will not know whether their cost is increase or decrease. For example, if the budgeted cost is 4.000, but the actual one is 6.000, it is not good for Sprint. In this case, if the manager match and find the variance, they will detect the problems and find the reason easily. In addition, the segregation of duties should also be focused on. For example, the person who requisitions the purchase of goods or services should not be the person who approves the purchase and the person who approves the purchase should not be able to obtain custody of checks, then the person who maintains and reconciles the accounting records should not be able to obtain custody of checks, etc. More importantly, as the cash book is the original document to prepare the three final accounts, the auditors should check it for purchase in terms of the quantity and quality in the order, the payments in the invoices, etc. This following, there some solutions to prevent or detect above frauds such as Regular stock checks, Management review of gross margins, Rotation of duties, Review by senior management, Comparison of budgeted and actual stationer expense, Segregation of duties, Check cash book payment for purchases- invoices, coding, details etc.

Figure 2.7. Internal Controls in a Large Company:Separation of Duties and Documentation(Neddles 2010)Figure 2.7 shows how a large company can maximize the separation of duties. Five internal units ( the requesting department, the purchasing department, the accounting department, the receiving department, and the treasure) and two firms outside the company (the vendor and the bank) play role in this control plan. Notice that business documents are crucial components of the plan.Figure 2.8illustratives the typical sequence in which documents are used in companys internal control plan for purchases and cash disbursements

Figure 2.8 Internal Control Plan for Purchases and Cash DisbursementsAs shown in Figure 2.8, every action is documented and verified by at least one other person. Thus, the requesting department cannot work out a kickback scheme to make illegal payments to the vendor because the receiving department independently records receipts and the accounting department verifies prices. The receiving department cannot steal goods because the receiving report must equal the invoice. For the same reason, the vendor cannot bill for more goods than it ships. The treasurer verifies the accounting departments work, and the accounting department ultimately checks the treasurers work.

Business DocumentPrepared by Sent toVerification and Related Procedures

1. Purchase requisitionRequesting departmentPurchasing department Purchasing verifies authorization

2. Purchase OrderPurchasing departmentVendorVendor sends goods or services in accordance with purchase order.

3. InvoiceVendorAccounting department Accounting receives invoice from vender

4. Receiving report Receiving departmentAccounting departmentAccounting compares invoice, purchase order, and receiving report. Accounting verifies prices.

5. Check authorizationAccounting departmentTreasurer Accounting attaches check authorization to invoice, purchase order, and receiving report.

6. CheckTreasurerVendorTreasurer verifies all documents before preparing check

7. Bank statementBuyers bankAccounting department Accounting compares amount and payees name on returned check with check authorization.

(Neddles 2010)IV. Conclusion:

It can be seen that the role of proper accounting records affect strongly to the control system of Sprint, without it, there are many unexpected materials arisen, which will have negative impacts on users investments. Therefore, to ensure accounting system is effective, the application of 10 mentioned fundamental accounting concepts should be ensured, especially the Revenue Recognition concept as it is the most essential one that help the company to prevent the wrong records in sales. Besides, having recognized the importance of internal control, Sprint has applied computerized system, from the step of requisition to the time that goods are delivered. However, good internal control like that is not enough as it is impossible for business to remove risks. For this reason, with the help of the above analysis about risks, it can be seen that there are also 2 cases of fraud occurred in the company without being detected, which indicates that it is not strong at all. From that point, in the analysis of three types of risks, Sprint should look at the scandals from other companies so as to gain their own experience and consolidate its internal control by such failures of others. Besides, the company also should base on the above steps of audit, which is presented carefully and completely in the mind map so that they can carry out by themselves and detect other undetected cases in the company. Moreover, with the help of detection and prevention of fraud as well as the standards of accounting statement, which are recommended in the last session, Sprint can have more ideas about the ways to protect their internal control strongly and effectively.

V. References:BibliographyDong, Bao Nguoi Lao. nguoilaodong.com. 2001-2011. (accessed 3 2015).http://nehsfbla.wikispaces.com/Accounting+II. (accessed 3 2015).Learning, Media. Finacial System and Auditing. London: BPP, 2010."Accounting records." In Slide, by Lecturer, 38. 2015.Neddles, Marian. Financial Accounting and Managerial Accounting. CENGAGE Learning, 2010.slide, Lecturer. "accounting records." ppt.25. 2014.slide, Lecturer. "Business risk." ppt. 27-28. HCM, 2015.slide, Lecturer. "Business risk." ppt. 15. HCM, 2015.SlideLecturer. "Manual and Computerized System." ppt.5. HCM, 2015.

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