Famima!! Internal Control
When looking for a quick drink or fast meal, it is sometimes very troublesome to have to drive to a market and wait in potentially long checkout lines. This sparked the idea for a smaller store that only carries the most frequently bought items for the customer’s convenience. Nicknamed convenience stores for very obvious reasons, these little establishments exist all over the world and carry just about any little thing you might need at a very local distance. Inventory differs largely based on location and ownership, but these stores will carry everything from water to groceries and even motor oil. In Japan, most convenience stores are smaller and family owned ...view middle of the document...
Do they use a computer-based accounting system or do they do their accounting manually (without computers)?
KC: Our stores use a computer based system with custom software designed specifically for the company.
Does the accountant/bookkeeper handle all of the accounting duties (i.e. accounts payables, receivables, bank deposits, mailing of checks, payroll)?; if not, who else does?
KC: These duties are separated and differ from the retail stores to the corporation. Store managers are in charge of their store’s inventory and place orders as needed. The store manager also handles bank deposits per their respective store which is to be received by the corporation. The store manager must coordinate with the corporation accountants to confirm purchases made for the store and discuss any excess orders or waste of supplies. Payroll is handled by a separate division within the corporation which also handles the disbursement of checks. I am unsure as to the specific details of the payroll department.
Does the company have a security system covering the office/building protecting the company’s assets (equipment, sensitive records etc.)? Do they use any other forms of security?
KC: All retail locations along with company supplied equipment are insured. Security cameras are also installed at all stores and aimed at critical locations such as cash registers. Retail employee records are kept encrypted in the company system, but the store manager also keeps a physical copy in the store. It is up to the discretion of each manager as to how to keep those documents safe.
Does the Human Resource Dept. do background checks on new hires, and do they require bonding for personnel in sensitive positions?
KC: All employees are subject to background and drug tests, with no exceptions. Higher ranking positions requires a very extensive interview process.
Do they have strong separation of duties?
KC: Similar to the accounting duties, task differ largely from the corporation to the retail stores. The corporation follows the traditional method of control in that all duties are separated in order to help protect the company’s assets and to help deter fraud. But due to the nature of the company and limited resources, the retail stores have the store managers handle all authorizations, recording, and custody pertaining to each respective store.
Do they restrict access to assets (the use of restricted storage areas in order to protect inventories and equipment); (the use of cash registers, safes, lockboxes and safety deposit boxes in order to limit access to cash, securities and paper assets)?
KC: All retail stores use electronic cash registers and cash at the end of each employee’s shift is deposited into a safe which is to be reconciled by the manager later.
Do they provide all employees with a copy of their company policies and procedures?
KC: All newly hired employees are given a copy of the company policies and procedures. All break rooms...