KOLEJ POLY–TECH MARA BANGI

PRINCIPLES FINANCIAL OF ACCOUNTING II

PAC 1123

ASSINGMENT INDIVIDUAL

PREPARED BY :
NUR SYAHIRAH BINTI ZULKIFLI
PTM190723923

SECTION :
AB 2.42

PREPARED FOR :
MADAM MONALIZA BINTI IBERAHIM
Maluma Corazon just opened a hijab boutique in Southville Town. She needs urgent
staff to run the business. Fortunately, she found that I can help her to manage the
operation of her small business boutique. All I need to do is to identify the operation of
the business, in a case to build the internal control of this small business.

Maluna Hijab Boutique will be opened from 10.00 am till 10 pm every day. By now,
Maluma was the cashier for her boutique with the 2 salesgirls and 2 storekeepers. The
situation described below in my information to identify internal control.

Situation A: Maluma is alone handling the cashier counter and sometimes she had
difficulty in handling the counter since she needs to meet the supplier. Then she
assigned any of the salesgirls to handle the cash register.

Situation B: Maluma keeps all the entire documents of a purchase order and invoices
in the same files. At the end of the day, she just leaves the document in the unlocked
drawer and will be sorting for filling for the next day.

Situation C: The storekeeper is not labeling the product and stock is not well
organized. This because the storekeepers are working in the morning only or while
stock arrived.

Situation D: The salesgirls had difficulty handling the customer at peak hours and
were so tired because they have no rest time to entertain the customer.

Situation E: Maluma wondering to have the CCTV to control her boutique outlet to
protect from robbery.

As the assistant for the Maluma, I have to give my suggestion of each situation
described above by identifying the suitable principle of internal control with my own
opinion. Explain your argument detail on each situation then suggest the best solution
for this small boutique business.
 FILA CHART
F - facts ( from the problems statements)
I – ideas : the knowledge what you need to know
L – learning issues : any doubt / uncertainty that requires resolution. It is also known as trigger,
case or task.
A – action or plan to be taken in order to solve the problem.

Situation Facts Idea Learning Action

Issues
Situation A Establishment Of A strong principle of Maluma Maluma needs to find
: Maluma is Responsibility internal control requires a himself runs a a new employee with
alone handling proper authorization for cashier and expertise or
the cashier every transaction since “ sometimes she experience as a
counter and control is most the has difficulty cashier to help her so
effective when only one managing the she doesn't have to
sometimes she person is responsible counter worry about leaving
had difficulty in for a given task”. because she the counter and she
handling the needs to meet can meet the supplier
counter since the supplier. when the supplier
she needs to wants to meet
meet the according to the time
supplier. Then specified by the
she assigned schedule with the
any of the supplier
salesgirls to
handle the
cash register.

Situation Documentation A good internal control Maluma stores Maluma needs to

B: Maluma Procedures should have an adequate all the separate the
keeps all the documentation and purchase order purchase and invoice
entire records. Adequate and invoice documents into
documents of a documentation provides documents in different files so she
evidence of well managed the same file can easily find them
purchase order
and recording of the data. and leaves the and she needs to
and invoices in A pre- numbered document in keep the files in the
the same files. documents and proper the open locked drawer to
At the end of filling system. drawer without keep them safe and
the day, she to close and this will help Maluma
just leaves the lock it the easy to find the
document in drawer before document that she
the unlocked she going to wants when she
drawer and will back to home wants to check the
be sorting for cash flows
filling for the
next day.
Situation Segregation Of It is also known as The Maluma needs to find
C: The Duties ”separation of duties or shopkeeper a new storekeeper
storekeeper is division of work”. Two does not label who is committed and
not labeling the common applications of the product and doing their job well or
product and segregation of duties are : the stock is not Maluma needs to
1) Different persons well organized create a timetable for
stock is not
should responsible for because the easy shopkeepers.
well organized. related activities shopkeeper and Maluma has to
This because  The work only works in take a look at what
the of one the morning they are doing.
storekeepers employee and when the
are working in should , stock arrives.
the morning without a And the
only or while duplication shopkeeper
stock arrived. of effort, doing lazy work
provide a and not really
reliable trying to get
basis for something
evaluating done
the work of
another
employee.

2) The responsibility for

record – keeping for an
assets should be
separated from the
physical custody of that
asset.

 The control
is strong
when one
employee
maintains
the record
of the
assets and
another
employee
has
physical
custody of
the asset.
Situation Human Control over the The salesgirls She needs to hire a
D: The Resources Of employees action also have to deal new employee to help
salesgirls had Control important to ensure with customers her saleswoman so
difficulty effectiveness of internal during peak they can take turns
handling the control system. hours and the working with the new
salesgirls do employee and they
customer at
not have time won't be too tired and
peak hours and to serve the they will have time to
were so tired customers and rest. And the
because they they don't have salesgirls could rest
have no rest time to rest equally.
time to because they
entertain the have to
customer. entertain the
customers
Situation Physical, Physical controls are used Maluma is Maluma could place
E: Maluma Mechanical, and to safeguard the assets, wondering if the CCTV because of
wondering to Electronic Control enhance the accuracy and she has CCTV the entire boutique
have the CCTV reliability of the accounting to control her and place the CCTV
records. It is a physical boutique to control on the laptop
to control her
precautions used to protect against at the counter so he
boutique outlet protect assets and robbery and it could watch the
to protect from records. will help the CCTV while he did
robbery. problem in the his job or detect the
case have the CCTV on his
robbery and smartphone so she
that evidence could see the
can be a proof boutique wherever
she was so this way
he could protect his
boutique from
robbery and with
strict control it will
assist in the theft and
the event of theft we
have evidence that
can be shown to the
authorities