De La Salle University Dasmarias

College of Business Administration

Accountancy Department
MGAC306 Management Controls

Management Controls

Business Project for MGAC 306

Barney and Friends Members:

Bagang, Jemely
Boquiren, Kristine Dianne
Gallarin, Micah Danielle
Maratas, Lyndon
Reyes, Ariane
Rusia, Jamella

Date Submitted:November 6, 2015

Group Grade: ____________________

Page 2 of 28

Table of Contents
I.

Background

II.

Executive Summary

III. General Company Description

IV. Management Controls.

V.

15

Process Flowchart As-Is....

VI. Assessment and Recommendations

22

VII Appendices

24

Page 3 of 28

I.

Background

As you hear the term Management Controls, the first thing that will come up in your mind is the internal
controls being applied by an organization in addressing daily business operations. Management control is
broader than that. Management controls pertains to the system which gathers and uses information to
evaluate the performance of different organizational resources like human, physical, financial and also the
organization as a whole in light of the organizational strategies pursued.
We, students enrolled in this course, expect to learn not only about the internal controls of the organization
but about how an organization will make sure that its operations are running smoothly by implementing
strategies and procedures. We students also expect that we are able to understand the organization in the
point of view of a management accountant. For a period of five months equivalent to a semester, these
expectations were achieved. We learned about the factors to be considered in understanding an organization
especially the importance of it. We are also able to scrutinize the processes of an organization because of the
discussions being learned inside the classroom. The different activities provided by our professor also helped
us to further analyze the procedures, strategies, plans, processes, and controls of an organization. Moreover,
this course helped us not only to understand the system of a company but also to be an ethical person
especially in the field of business and finance.
Management controls plays a critical function in each organization, whether the organization is big or small.
The success of an organization does not just rely on its profitability and financial operations but also to the
effectiveness and efficiency of its management. It is the key driver that makes most of companies become
successful. The typical problems in management controls that an organization is facing can be fraud, theft,
abuse of authority, malpractices, unintentional errors, and lack of cultural responsibility. The three main
causes of these problems are lack of motivation of employees, lack of direction, and personal limitations.
Thus, a well-structured management control system is a must to prevent the susceptibility of these problems
to happen. It is also important that its management control system be known to its constituents in order that
the operations are aligned to their controls. An organized management control system will contribute a lot to
the efficiency and effectiveness of the organization within in the industry it belongs to.
To apply what we have learned in this course, the group conducted a business/company analysis on Backje
Philippines Inc. Backje Philippines Inc is a trading company which is engaged in the sales of mechanical parts.
This paper discusses our analysis and evaluation of the chosen companys internal controls, management
strategies and corporate governance. Basically, this paper is a written application of what we have learned
throughout this course.

Page 4 of 28

II.

Executive Summary

Backje Philippines Inc. is a specialized company in the field of EDM Supplies, Lapping Tools, Metal Working
Machinery, and other specialized industrial items and equipment. It was established in 2002 and was fully
registered in Security and Exchange Commission (SEC) in 2003. Pursuing to keep pace with the rapidly
changing world situations, Backje strives to supply best quality items and excellent services, as well as develop
new products with reasonable price and continuous innovations. Backjes customers are composed of 40%
industrial companies and 60% local companies. The company exclusively distributes materials to its clients
giving it a competitive advantage to strengthen and grow its market share over competitors.
Backje company name actually derived from Back to Jesus doesnt only focus on striving excellent business
performances but also ensures that everything that they do is always lift up to Gods name. Being Christcentered, nationality differences within the organization do not become a barrier for them to have
harmonious working relationships and deliver strategic goals. Mr. Hee Chun Yoo, a Korean native Chief
Executive Officer of Backje Philippines, fulfills the duty of overseeing and driving the companys
performance by providing leadership and direction to senior manager. The senior manager, Ms. Ki Sun
Chung, in turn is the one who assigns responsibility for establishment of more specific internal control
policies and procedures to personnel.
In the Accounting Department, Backje is using a computer-based accounting system and processes
transactions in a real-time system. After the teams analysis of the companys current practices and controls,
specific areas or activities that need to be improved were identified. One is the integrity and reliability of their
computer programs with which the team recommends that Backje should pay more attention to, since the
quality of their financial reports lies on the accuracy of accounting system they are using. In line with this, it is
of high recommendation for the company to invest in IT functions within the organization to address the
high risks associated with the heavy reliance on computer programs used in all its transactions. Currently, they
just purchase a particular system that is appropriate for a specific transaction, and if malfunctions happened,
the repair of the system will be outsourced. Having an IT function improves quality of general controls over
duties related to design, maintenance, and operation of computer programs thus delivering accuracy and
reliability of their recorded and reported transactions. Another weakness pertains to the delivery of unpaid
goods to customers with unpaid balances which can be addressed through implementing a strict regulation
regarding payment of customers. Lastly, lack of physical backups of important files due to computer-based
processing system can also be a red flag to the firm to have inadequate accounting records if unexpected
destruction of computer files happens, thus physical backups of important documents must be kept.
The team believes that applying these recommendations would address the aforementioned weaknesses and
would contribute to the companys commitment to strengthen business presence in the industry it belongs to.

Page 5 of 28

III. General Company Description

Backje Philippines Inc. is a specialized company in supplying EDM supplies, cutting tools, lapping tools,
measuring tools, machine tool accessories, lubricants, CNC machines and other industrial tools and
equipment. It is located at 2/F CAP Pension Bldg., Governors Drive, Brgy. Mabuhay, Carmona, Cavite. In
January 2003, Backje Philippines Inc. was fully registered in Security and Exchange Commission (SEC).
Its Mother Company, Backje Co. Ltd and sister companies Backje TS Co., Ltd and Backje EMT Co., Ltd are
all located at Seoul, South Korea. These companies export EDM wear parts, brass & copper tubes, filters, ion
exchange resin, diamond guides, EDM drill machine guides ceramic parts, rust remove liquid, brass wire, and
copper tungsten. Also, these companies are exporting and importing work from Backje Philippines Inc.
Company Vision
Committed to do all of our best to establish highest quality items, good services, fast quotation with the most
reasonable price, and learn more to suite our clients by providing them Quality Products.
Products
Wirecut Consumables
Includes items such as EDM spare parts, ceramic guides, TS guide set for Sodick K1c, Tapping Electrodes
for EDM, Brass/Copper tube Electrodes for EDM, Copper Tungsten, Finecut EDM Brass wire, Ion
Exchange resin, EDM filters, rust and carbon removers.
Doosan Infracore
A brand of Computer Numerical Control (CNC) machines that control the feed rate coordination, location
and speeds of other machines in the manufacturing sector. It is used in jobs that need a high level of
precision or very repetitive tasks. Other than normal CNC machines, Doosan Infracore also offers CNC
Turning Centers, CNC Multi-Axis Turning Centers, CNC Multi-Tasking Turning Centers, CNC vertical
Machining Centers, CNC horizontal Machining Centers and CNC Horizontal Boring & Milling Machines.
Conventional Machines
Includes items such as mini lathe machines and universal milling machines (WMI), super drilling EDM
Machines (ENTERTECHNOLOGY) and oil mist cleaners (YHB)
Korloy
A brand of Carbide Inserts and cutting tools.
Dinox
A brand of Tool holders, chucks and Collet

Page 6 of 28

Sang-A
A brand of Pneumatics such as air gun, polyurethane tubes, coiled tubes, one-touch fittings, couplers and
speed controllers.
Widin
A brand of cutting tools specialized in end mills, drills and reamers.

Vertex
A brand of machine accessories such as band saw machine, punch former, ER collets, Lathe centers, touch
point sensors and magnetic V-Blocks.
Daiwa Rabin
A brand of rubber abrasives such as mounted points, wheel types and square bars.
In-size
A brand of measuring instruments such as Vernier/electronic caliper, Vernier/electronic micrometer, profile
projector, dial test indicator, and digital indicator.
Jw-Chemicals
A brand of industrial chemicals such as Mold Releasers, rust preventive, multi-purpose ease oil, electrical
contact cleaner, rust remover, mold carbon cleaner, and degreaser cleaner.
SK Lubricants
A brand of bearing oil, EDM oil, engine oil, coolant, forming oil, grease oil, gear oil, hydraulic oil, industrial
gear oil, neat cutting oil, quenching oil, rust preventive oil, soluble oil, spindle oil and way oil.
Oh-Sung Midas
A brand of tool cabinets, tool pick-up, and clamping tools such as flange nut, plain clamp, flat washers, T-slot
bolt and stud bolt.
Shinhan Diamond
A brand of diamond & CBN wheels, carbide plates and carbide rodes.
Eight
A brand of hexagon wrench

Page 7 of 28

YG-1
A brand of cutting tools such as carbide end mills, HSS machine taps, drills, countersinks, center drills, HSS
end mills, HSS fluteless taps, carbide rotary burrs.
Yooyoung abrasives
A brand of abrasives such as cut off wheels, flap discs without pad, net grinding wheels, unmounted flap
wheels and shaft flap wheels
Besdia
A brand of lapping tools such as diamond mounted points, grinding stones, diamond tapered machine files
set, ceramic fiber stones, felt bobs and diamond tapered hand files set.

Industry Analysis
As Backje fits in a trading industry, they are working with different kinds of products which are sold
for consumer or business purposes. They work in a specific geographical area, while their customers, the
shops, work in smaller areas and often in just a small neighborhood. Today, Backje refer mainly to global B2B
and B2C traders, highly specialized in one goods category and with a strong logistic organization. This
emphasizes their fixed planning horizon in line with the industrys exponential growth.

Core competencies
Exclusive Distributor
Backje Philippines has industrial materials such as spare parts and machines exclusively distributed by them
which give it an edge from its competitors. Industrial companies that need these materials directly contact
Backje to get supplies instead of getting supplies from abroad which cost them more because of shipping
fees. The clients of Backje Philippines are able to save more because of this.
Product Price
Backje Philippines offers lower price industrial materials because it obtain its supplies directly from the
manufacturers of equipment, machine parts, tools, lubricants and other industrial materials unlike other
trading companies that sells higher because they obtained it with high costs from other distributors. Backje
Philippines is able to get its targeted profits on these products even if it offers lowers price than the other
companies.

Page 8 of 28
Organizational Chart

Page 9 of 28

IV. Management Controls

Executive and General Administration Department
Executive and General Administration is the responsible department in managing all departments of the
company. It has an overview of all the transactions happening in the company. Most of the time, the
executive and general administration verifies the business operations. It is also responsible in planning and
controlling as well as fixing disputes among the department. Furthermore, it also have the authority to know
who are the outside parties involved in the business operations. The following pertains to the areas of
responsibility of executive and general administration department.
Suppliers and Customers
Backje Philippines only accepts company clients not individual clients in supplying materials. Its clients are
composed of 40% industrial companies and the remaining 60% is composed of local companies. Backje
Philippines does not export materials to other countries but it imports 98% of materials from its suppliers
abroad. The remaining 2% are from local suppliers.
Backje Philippines has short/long term supplier contracts with fixed amount of cost per certain volume of
item that can be renewed or changed monthly or yearly. The delivery of items from abroad to its warehouse
depends on both parties agreement whether the supplier or Backje will pay for the shipping fees. The partner
shipping company of Backje in Manila will make the delivery to Cavite if ever the suppliers shipping point is
only up to Manila. Local suppliers are paid in check while foreign suppliers are paid through bank to bank
transfers.
On the other hand, customers of Backje only have purchase orders. The customers will give purchase orders
with quantity and negotiated price. In collection of payments, the terms given to the customers depend on
their credibility to pay. New clients are required to pay cash on delivery. In order to avail credit to Backje, its
clients need to comply with its requirements in credit policy. First, the client needs to submit customer
information sheet to Backje in order to analyze its capacity to pay. Then the client needs to submit the
required documents by Backje such as business permits, certificate of registration in SEC, mayors permit,
bank reference, and financial statements. The client will be assessed of its capacity to pay by analyzing its
financial statements, whether it is profitable or not and by computing its return of investment to the
company. Upon completion and approval of required documents, Backje will grant its client standard term of
30 days.
These outside parties are known to executive and general administration because before these parties have a
transaction with the company, it should undergo proper authorization process.
Management
The head of each department in Backje Philippines is responsible for the processes made in their
departments. If ever there will be a problem, the head must handle it first and try to solve it by her/him.
Then if the head cannot solve the problem, the administration will handle it and try to solve it. If the problem
cannot solved by the admin, the top management will involve themselves to solve the problem. The
companys rule about solving problems is if the problem can be solved among themselves without involving
the administration and the top management, then they must solve it without exaggerating the matter.

Page 10 of 28

Value of the business

Backje Philippines shows its growth potential by continuously expanding its offered products by acquiring
contracts and rights from foreign suppliers. Its product expansion helps the company to increase its revenue
and be known to other industrial companies. It also increases the demand for the companys products. Backje
Philippines also focuses on providing high quality products by securing the companys standards through
physical inspections.
Human resource requirement
Backje Philippines needs people that have soft skills aside from technical skills especially in HR, marketing
and sales department. Soft skills are skills that characterize relationships with people. Human resources
require people with communication, collaboration, adaptability, and problem solving skills since the company
deals with different clients in supplying industrial materials and equipment.
Finance and General Accounting Department
Part of the General Accounting responsibilities is reviewing, analyzing and recording the financial data for the
Backje Philippines, Inc. The accountants are responsible for monthly and year-end closing of accounting
records and preparing this information to the head management of the company.
The following are the tasks under General Accounting and Finance Department:
1. General Ledger
The companys transaction on sale is always following the accrual basis, therefore they only
record the costs
One of the companys credit policies is to know first the financial capability of their
client/customer to pay debts or liabilities. The clients will be required to give any of these
customer information sheets, business permits, and financial statements because this will
serve as the companys basis whether to allow a client to make a liability out of the company.
2. Billings and Receivables
For the billing, the accounting department is the one who will record the account that is
appropriate when a sale transaction happened; also the approval in the accounting
department should be done in order to verify the billing accounts with accounts receivable
ledger so to ensure that all payments are accounted for and properly posted.
Updating the Generate financial statements and reports detailing accounts receivable status is
also done as part of verifying the accounts receivables ledger of the company.
The accounting collections are updated weekly, since 80% of the clients are releasing
payments every Friday. Sales department is the one who picks up the collections.
3. Disbursements
Whenever the company purchases a material, the accounting department will recheck if the
invoices are properly accounted and also the actual checks must be approved for the actual
amounts to be paid. They are the one who will prepare for the amounts needed whether be it
on cash or check, and then it will be remitted to the supplier.

Page 11 of 28

4. Financial Statements
In the accounting department, the cash flow management will be prioritized since it involves
the daily cash flows of the company therefore, it is monitored every day. The trial balance,
balance sheet, and income statements are done every quarter since it couldnt be done in just
a small span of time.
The reconciliation is always done in a monthly basis, the sales account is reconciled to know
if the amounts are properly recorded and adjusted, also some other reconciliation accounts
like those that are just typographical errors. As part of the BIRs requirement, the companys
objective is that the sales account should tally with the amount that was recorded by the BIR
in order to know the correct taxes to be imposed.
Sales and Marketing Department
Backjes Sales and Marketing Department consists of 14 salesmen, 5 after-salesmen, and 5 marketing
personnel. Since the main business of the company is trading, sales is very critical in its operations. Through
their salesmen, Backje establishes a close relationship with their customers in order to build confidence and
loyalty in each other. The after-salesmen are tasked to aid in and address any item defects that the customer
might experience during the course of the useful life of the item. The department is in charge of maintaining
prior customers and seeking new ones for the growth of the company.
Sales and Marketing Department are in charge of the following tasks.
1. The sales and marketing personnel are the initial and succeeding contact of the customers.
Consistency is the key in order to show customers that they are valued and being well attended to.
2. The department is in charge of drafting strategic plans and reviews, implementing customer-service
standards, and preparing action plans.
3. The department shall meet marketing and sales financial objectives established by forecasting
requirements and prepared budgets. Variances, if any, are to be analyzed and sought with corrective
actions.
Manufacturing and Logistics Department
Backjes logistics department is entrusted with the responsibilities of ensuring that the entire process of
logistics is maintained and developed in accordance with the goals of the company in economic cost. The
tasks of the logistics department involve storage, distribution, warehousing, movement of goods from one
place to another (internally or externally), tracking and delivery of goods as efficiently as possible. Generally,
Backje Company includes a complete process of planning, managing, controlling and coordination to make
sure that the goods reach the right place, at the right time, for the right cost and in a right condition.
Logistics Department performs major tasks.
1. The department ensures that the goods are reached on time, in a safe condition and at the right place.
It also serves as a middleman between organization, vendors and carriers for tracking down the
geographical location of the goods and thereby provides customer support.
A. 2 terminologies used in delivery:

Page 12 of 28

a.

Inbound
The supplier will be the one who will ship the goods and touchdown the dock next
to or alongside the vessel located in Manila. When the goods has been landed,
theres an agency, in partnership with Backje, who will take the materials and send it
off to the company.
b. Outbound
Backjes assigned salesman is responsible of sending materials or goods directly to
the customer. When in the sense of urgency and theres no salesman in the area, the
customers themselves will pick up the goods from the warehouse of the company.
2. The department is also responsible for coordination with suppliers with regard to scheduling,
hedging and timely delivery.
Internal Controls
I.

Accounting and Reporting Process

Authorization
Backje Phils. Inc. is using a computer-based accounting system. They do recording and journalizing
of transactions in a real-time processing system. The transaction authorization in such system is an
automated task. The accounting team leader sees to it that the transactions being recorded and
entered into the system are those that are valid, existed, have occurred and approved transactions.
Segregation of duties
Individuals having an access to cash of the company are separated from the ones responsible for
updating accounts receivable records or approving write-offs or adjustments. Responsibilities for the
approval of journal vouchers and correcting or adjusting entries are also segregated from preparation.
In Backje, Sales Function handles all cash transactions, while Accounting Function performs the
recording, summarizing and reporting of those.
Accounting records
Special journals, ledgers, and other accounting records of Backje Phils. Inc. are digital. These digital
records are the basis for their financial reporting, thus the accounting team leader meticulously
reviews every transaction before having it entered into the system. Even the hard-copy printouts of
these digital records are being reviewed, since employees, aside from the accounting team leader,
manually enters the figures into the system and there might be a possibility that amounts are recorded
inaccurately, or not even recorded at all.
Independent verification
The company performs daily cash flow management monitoring, thus day-to-day transactions are
being reviewed and variances are daily recorded. Bank reconciliation is being done monthly.
Reconciliation for other accounts such as sales, VAT, and company assets are also being conducted.
Actual sales figures are being reconciled with sales in BIR system on a monthly basis, as well as the
transactions that are subject to either zero-VAT or 12%-VAT. The reconciliation of assets, on the
other hand, is being done every end of accounting period.

Page 13 of 28

II.

Order-to-Cash Process
Transaction authorization
Backje Philippines ensure changes to customer data are valid and properly authorized. It also ensures
the credits are authorized and adhere to company policies. Backje conducts credit checking before
accepting the orders of the client. It should be within credit limits and terms before the order is
processed. Also before the products are being dispatched, the warehouse department authorizes the
delivery by first approving the sales invoice prepared by marketing department. In this way, all
transactions are known and are properly authorized to prevent anomalies in processing the sales
order of the clients.
Segregation of duties
Backje Ph practices segregation of duties in processing orders from clients. Once the order reached
the accounting, accounting will check if the material is available through the automated record being
updated by the warehouse department. If the order is complete, it is forwarded to marketing to
prepare the sales invoice. Simultaneously, the warehouse department will prepare the delivery receipt
indicating that the material is ready for delivery. Right then, the accounting will update the accounts
receivable ledger. This emphasizes the segregation of duties in receivables and invoices.
Accounting records
Backjes accountants make sure that all involved departments have copies of the sales order and the
accounting has a copy of sales invoice coming from marketing and delivery receipt coming from
warehouse. These documents will serve as the source in tracing the transaction once problem arises.
Also, it is good that Backje have automated records for safekeeping so that retrieval of these source
documents will be easy in times of emergency.
Safeguarding of assets
Backjes way of safeguarding the assets especially the cash payments of clients is by maintaining a
bank account wherein all payments of clients are being deposited. In this way theft of cash will be
prevented because authorized personnel only have the access to this bank account. Also, by assigning
personnel in warehouse apart from other departments is a way of safeguarding their products
because the functions are not being handle by same person or department. Moreover, Backje is very
strict in showing the actual product; they provide product catalogs instead of actual products to
prevent the possible theft of these materials since it may serve as an excuse for clients and warehouse
personnel in getting products from the storage.
Independent verification
Backje verifies its transactions by updating accounting records and reconciling source documents.
Real time recording of transactions also helps the company to verify transactions because if an error
or discrepancy occurred, it can be determined instantly. Lastly, there is comparison made in the
source documents provided by marketing, warehouse, and accounting to see if the orders have been
matched.

Page 14 of 28

III.

Purchase-to-Pay Process
Transaction authorization
Backje Company maintains accountability in terms of authorizing, reviewing, and approving
procurements based on signed agreements, terms and conditions, and purchase orders in compliance
with the ethical buying practices and policy.
The owners are the ones who review and update signature authorizations periodically. Any
of them (3) could sign the check for payment of purchases for the supplier.
The Purchasing obtains final approval of purchase order to be sent to the
The authorized personnel in the warehouse, accounting, and purchasing, respectively, verify
purchase order and invoice information.
Accounting is authorized to reconcile ledgers for accuracy of recording buying transactions
Segregation of duties
Backje Company ensures proper segregation of duties, and assigns related buying functions to
different authorized personnel. With proper segregation, no single person has complete control over
all buying activities.
Current Practices
Purchasing
Checks inventory level
Approves purchases
Has the direct contact to supplier
Warehouse
Receive orders
Performs inventory counts
Ensure the security of materials
Accounting
Monitors the buying transactions to ensure that invoices are paid in a timely manner.
Reviews and reconciles financial records
Approves invoices for payment
Accounting records
Backje Company practices timely review of suppliers invoice, packing slips, and
purchase orders. Since their mode of payment is in the accrual basis, they ensure the accuracy of the
information for prior payment, correct quantity ordered, and price charged. Moreover, accounting
department executes monthly ledger reconciliation to find improper charges and validate appropriate
financial transactions.
Reviews supplier invoices for accuracy by comparing charges to purchase orders.
Verify that the materials acquired from the supplier have been received and record buying
transactions in a timely manner.
Perform monthly reconciliations of operating ledgers to ensure accuracy and timeliness of
expenses.

Page 15 of 28

V.

Process Flowchart As-Is

Page 16 of 28

Page 17 of 28

Page 18 of 28

Page 19 of 28

Page 20 of 28

Page 21 of 28

Page 22 of 28

VI. Assessment and Recommendations

Accounting and Recording Process
The group recommends the management and accountants of Backje Philippines to pay more
attention about the integrity of the computer programs that perform their day-to-day tasks and
operations. Quality of general controls over segregation of duties related to design, maintenance and
operation of computer programs must be of great concern since the quality of their operations lies
on the accuracy of accounting system they are using.
Controls that restrict unauthorized access to the computerized system must be implemented such as
passwords given only to those responsible levels of management, since digital accounting records are
vulnerable to unauthorized and undetected access.
Physical source documents must also be developed for backup, because destruction of computer files
can leave a firm with inadequate accounting records.
An independent committee must be established to perform control activities of ensuring that
financial statements are reliably reported in compliance with the companys reporting standards and
policies and in accordance with the adjusting and closing journal entries.
Aside from the recommendations for Accounting and Recording process, the following are the weaknesses
with corresponding recommendations for Backje Philippines Inc.
Weakness: Delivering unpaid goods to customers who still have credit balance
Since Backje Philippines Inc. supply goods to customers, there are some instances that the company
will allow to deliver the goods even if the customers still have a credit balance. The customers might
take advantage of the situation by not paying it at all due to unexpected insolvency. In effect, there
will have a large amount of pending balances from these customers that will affect the cash flow
management of the company.
Recommendation: There should be a regulation in the company regarding the payment of
customers. Before the customer can claim the goods, the company must have the copy of the official
receipt verifying the payment. However, if a partial payment has made the customer should pay at
least 50% down payment. Another way is to automatically notify the customer about the pending
balances.

Page 23 of 28

Weakness: No physical backups of important files and documents due to computer-file based processing system.
Backje Philippines Inc. uses a computer-file based processing system in all of its transactions that led
to some of documented files being not prioritized at all. Using this kind of system has also its
limitations such as data redundancy, data inconsistency and data dependency.

Recommendation: The company should have at least physical backups of their important
documents, and it is better if these documents are segregated properly according to its transactions
especially the companys expenses as these will serve as their basis in verification and recording of
amounts.
Weakness: Having no IT functions in the company.
Backje Philippines Inc. does not avail an IT function inside the company; instead they just purchase a
particular system that is appropriate for a specific transaction, so if some malfunctions happened, the
repair of the system will be outsourced.
Recommendation: As a company which have transactions from suppliers abroad and with clients
locally, IT function is essential and must be implemented in the company since large transactions are
being addressed. Having an IT function implements systems and services, drives projects and tasks to
completion and actively seeks solutions to any and all obstacles and analyzes major system
applications to identify and document complex business and technical requirements to solve
customer business needs in a cost-effective manner.

Page 24 of 28

VII. Appendices
Products offered by the Company

Page 25 of 28

Page 26 of 28

Page 27 of 28

Page 28 of 28

After the interview with accounting head Mr. John Michael Cosme and owner Mr. Timothy Yoo last
October 16, 2015.