Cherry #6 In assignment and authority factor of Halimuyak Company, the auditor had observed these circumstances which to our

judgment render it to strengthen the companys internal control. Phil and Doug which are the owners of the company are highly participating the companys daily operations. Phil is engaged usually in the field work and also helps in managerial and operating decisions. The job commitments obtained by the salespeople are approved by Mr. Day, the companys office manager. There is also an exception report of special prices which is produced and sent to the salespeople to ensure that the specially negotiated commitments to jobs were processed correctly. The computer system and sales system is also reevaluated at least once every eight weeks. The auditor had also recognized that there is overlapping of duties due to lack of manpower that leads to confusion of responsibilities which further weakens the internal control. Moreover, Mr. Day, the companys office manager created its sales system and he sometimes makes adjustments to improve the system. There are no hard copies or files for back-ups for computer system inputs. These are the things that need to be addressed because there is an indication of incorrect division of authority and responsibility in this area.