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You being a manager in an audit firm has been assigned to evaluate internal controls of Suzuki Motors Pvt Ltd and give your recommendations to correct the situation. (10M)

1. Suzuki ltd has no formal internal control procedures and they think only employees has all the responsibility to look after controls. And directors or managers has no role to play in it.

At the month end stock take activity is not being conducted as they think doing that would make their employees think that management do not trust them.

Alis manager was on annual leave and he issued various invoices without taking authorization which caused company loss of material amount.

They have a store in office where all the files and other material like stationery and such other items are being kept without any proper sequence, whenever they want any stuff from their it takes hours to find a particular file etc.

The officer in charge for cash usually takes cash from it for personal use and then put it back after some days. Also employees use company assets for personal use like USB, laptops, CARS.

WHNEVER GOODS enter the premises no inspection is being done before receiving it and goods received note is also not prepared at the gate, while they are just sent directly to the concerned department.

Whenever any employee wants to report any unethical behavior they are not sure where to repot.

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