EASTLIFE SOLUTIONS AUDIT TEAM
STATEMENT OF FINDINGS AND RECOMMENDATIONS
CLIENT: BOHOL CCT AGGREGATES INC.
ACCOUNT TITLE FINDINGS
CASH CASH receipts from the quarry site at
San. Roque, Baclayon, is transported
to the Office at Taloto Dist., Tagbilaran
City by means of their fuel tender or
the driver.
Given the fact that huge amount of
money is being transported daily, the
confidence level the audit team
observed is that security for the
money (from site to office) is quite
dangerous. The quarry site to the
office is somewhat susceptible to
possible theft and even inside job.
The client, besides the
abovementioned findings, is
performing measures that suggest
strong internal control for CASH. (e.g.
signatories are needed before
disbursements of CASH are approved,
surprise AUDIT, including CASH
COUNT, are conducted as part of
control)
OTHER Accounts receivable and other
RECEIVABLE receivable are accounted for
separately.
RECOMMENDATION
The site cashier must be the one who will
remit the CASH to the Office at Tagbilaran
City. Invested in his/her responsibility,
cashier is the appropriate personnel for
CASH.
Our client, Bohol CCT Aggregates must put
into consideration employing one security
personnel that is only focused to the
money carrier (assuming its the fuel
tender AND hopefully the SITE CASHIER in
the future) all through-out the duration.
This practice is beneficial for the company,
BOHOL CCT Aggregates Inc. and they must
continue such doing to detect possible
fraud or inside red hand acts.
The mentioned account titles can be
placed in a one-line item, Trade and Other
Receivables. In such a way, redundancy of
having to display two RECEIVABLE
ACCOUNTS will put into an end. If such will
be followed, the breakdown of figures will
be placed in the Notes to Financial
Statements (with corresponding Notes
number).