ANJO AMIEL A.

SANTOS

1. Control Activities of the company is not properly monitored. There is no proper segregation of duties
that may cause a lot of problems especially when the company will be audited. The VP for production
should only supervise the operational activities that are related to production therefore excluding the
management of inventory. There should be another department for handling the custody of material
management because proper segregation of duties may result into efficiency and effectivity. It is also a
common sense that the production manager should not handle the account for payroll because
fraudulent acts could arise. In terms of credit decisions, it shouldnt be under the control of the sales
manager. Just like what big companies do, the finance department should be the one to handle.
Customer billing should under the authority of the accounting department since they could be bias to
some of the customers in giving advantages like discounts. An accounting department should exist and
they should be the one to handle that accounts for receivables and payables because in proper
segregation of duties, finance department are not authorized to release checks and account for the
collections and disbursements of cash.

2.

PRESIDENT

VP PRODUCTION VP MARKETING VP MATERIALS VP FINANCE VP ACCOUNTING

TIMEKEEPING SALES INVENTORY CREDIT BILLING

MANAGER WAREHOUSE
APPROVAL

PRODUCT ACCOUNTS
PRODUCT MANAGER
PURCHASING CASH RECEIPTS RECEIVABLE
SALES

ASSEMBLY CASH ACCOUNTS

DISBURSEMENT PAYABLE
S

INVENTORY
CONTROL

PAYROLL

COST
ACCOUNTING