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MAF 680 INTERGRATED CASE STUDY INDIVIDUAL REPORT PREPARED TO:MADAM HANAFIAH PREPARED BY:HAZILIA BINTI HARMAN MATRIX

NO:2011697492 GROUP:AC2208F

ACKNOWLEDGEMENT
Alhamdulilah I finally finish this individual report even though there are many hardship I have been through.Special thanks to Madam Hanafiah for her concern as my lecturer.I really enjoy become her student.Also thank to my group members,classmates and my parents for all their support for all this time.Without you guys Im not who I am now.Finally thanks all again..

What should be done to improve leadership and management of DESB.Suggest new organisation structure and draft the applicable standard operating procedure specifically for the finance department to operate effectively.

From my opinon after I study the case of Delima Enterprise Sdn Bhd,I found several problems.I can categorize the problems and solutions according different department. 1.FINANCE/ACCOUNT DEPARTMENT In finance or account department, the first problem recognize is there is no budget planning was prepared. So to improve management can prepare budget planning it to plan on the cost that will be incurred.It is used to compare the budget cost and actual cost to see any variance and definitely to help manager to make efficient decision making.Second, documents are not properly pre-numbered, recorded & documented. In this case we can see that sales invoice are manually produces & not pre-numbered also the monthly statement of account not periodically prepare and only prepare & send to customer when payment had been long outstanding. This will contribute problems to finance department. The solution is for documents that involve invoices,purchase order,debtors order should be properly prenumbered.To make it easy the company should use latest edition of standard financial software such as MYOB, UBS and SAP to record to reduce error in recording the invoices.

2.HUMAN RESOURCE DEPARTMENT

For the first problem is HR department hire someone who do not have any experience or academic qualification.As we know that Cik Amy do not have enough knowledge and experience in her field of work. This is very not good to DESB because it will ruin performance of company and for the solution the management should hire someone that is capable in doing their work and the workers must meet academic qualification and have valuable experience. Second problem in HR department is the lack of training.The companys management select Cik Amy a fresh graduate from a local university with no relevant working experience to handle her job description as a Finance Executive.However, a simple thing as accounting treatment was unable to be solved by Cik Amy.So,the impact is employees unable to perform their work well due to lack of knowledge and this will give bad reputation to company.To solve this problem,I think Cik Amy should be send for further training by the companys top management to further enhanced her understanding in relation to her job description and competency to perform her job. The management also should enrol her to a short course designated to improve work efficiency and effectiveness in any local institutions such as UiTM,UM and others.The company also should provide guidance and training to new employees .like Cik Amy

The third problem in HR department is there are no segregation of duties.Encik Zayed does not exercise his duties properly as to segregate management duties equally among the employees of the company that he may thinks fits to perform such duties. Segregation of duties is important in a companys management as to avoid any task redundancy, fraud, negligence, power abuse, inefficiency and work delay. Moreover, it is to ensure the management works efficiently and effectively. Cik Amy is has been assigned to numerous workloads and some of the works are not within her job description as a Finance Executive. Encik Zayed should segregate Cik Amys workloads to other personnel according to the relevant job descriptions. For example, Account Payables and Receivables should be assigned to different personnel. Beside that, all decision should follow SOP and the duties also should be separated to general and specific authorization. The EPF contribution is also not be deducted and remitted to EPF.This also human resource departments problem.To solve, management of HR should pay salaries in monthly basis including EPF and SOCSO.There also problem of timesheet are manually prepared by employees and no staff in charge and monitor employee attendance. So,HR department should Install automated time attendance.For example they can use eye recognition,use punch card or either use time clock machine or thumbprint.They also can supervise time in and out of the employees. They should also hire an additional employee who can monitor the attendance and timesheet.This solution will avoid the employees from cheating their attendance.There also lack of competency in HR department.For example in this case,head of department leaded by unqualified staff,the management does not spend on training of staff and this will decrease company performance as a whole. HR department should spend more on training to equip employee with proper knowledge and they should hire qualified staff that have experience

Another problem is removal of Auditor before the expiration of his terms of office. Under Section 172 (4),(5),(6) CA 1965, only the shareholders can remove the auditor before the expiration of his terms.It also required the passing of ordinary resolution at general meeting with special notice of 28 days given to the auditor.On the other hand, directors also simply appoint auditor without any proper procedure. The correct action that can be taken are based on General rule,the directors may appoint an auditor at each Annual General Meeting under sec 172(1)) and the auditor appointed holds office until the conclusion of the next AGM.

3.ADMINISTRATION DEPARTMENT One of the problem is improper organization chart.The organisational chart was improperly drawn and too few positions had been added to the chart. The chart does not include distinct departments to show the organisation by departmental functions. It should be properly drawn with distinct functional departments to show distinct job description for each

department and several important positions should be added to ensure effective and efficient control. Second,I identify there are lack of authorisation of business transaction.There is no standard operating procedure that be implemented in that company.So, all decision were made & authorised by either En Zayed or Pn Hashimah. This will lead to misuse of power and give difficulty in preparing financial statement. To improve the management can do these;all decision should follow SOP,expenses should be authorised by at least two persons,personal expense cant be charged as companys expense, and lastly ensure compliance to SOP in every decision making and documenting. Another problem in admin department is there also has lack of control such as documents is not prenumbered & missing,assets were not recorded and no supervision.The management of Delima Enterprise Sdn Bhd can do these;documents must be serially numbered & kept properly,for assets it should be properly recorded & kept in a locked room and supervision must be done in regular and continuing basis.All recorded documents should also be marked posted.The management should review the adequacy of internal control on regular basis and every asset purchased must be recorded manually and computerized. There also should assign person(s) to be responsible for the company assets,create an Asset Management Division or propose the Asset Tagging System. For the problem of no standard operating procedure (SOP) when there are issue arise such as there are withdrawal of companys money made without proper documentation,and decision and authorization made by the directors on its own without proper documentation. I think Delima should implement standard operating procedure (SOP) to increase efficiency and consistence in performing task and at the same time to indicate compliance in the entity requirements and can be used to train others.This organisation chart below is the standard operating procedure that I can suggest: to DESB;