EXAMPLE: CAR HIRE
The following is a one page monthly report for a car hire company. A key feature is the short summary of internal control issues for management.
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INTERNAL
CONTROL ISSUES
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(2) The car hire booking systems are not Year 2000 compliant, and satisfactory substitute systems have not been identified. |
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Source of Information: |
Accounting records of ABC Car Hire P/L |
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Major Assumptions in Forecasts: |
(1) Revenue is 10 % over budget for remainder of the year. |
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(2) Commission rate is 13 % for remainder of the year. |
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Comment on Forecasts: |
ABC controller has based forecasts on historical data. |
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Responsibility for Forecasts: |
ABC controller. |
