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Father Saturnino Urios University

Accountancy Program
Butuan City




Cabusao, Ma. Catherine Joy Q.

Delos Angeles, Rose Christine L.

Derro, Regine Rose

Fojas, Kathyrine Kyle A.

Fortun, Czarina Abigail D.

Omoy, Jewvanie Joel D.

Table of Contents

Company Profile 1

Vision 1

Mission 1

Goals and Objectives 1

History and Background 2

Organizational Structure 3

Audit Objectives 4

Audit Scope 4

Competitors 4

Risk Assessment 7

Internal Control 9

Audit Program 10

Effectivity 11
Company Profile


At Steven’s Beauty Center and Accessories, we aim to give the best possible
experience to our clients by:

 Providing an exceptional service to our guests at an affordable cost, thereby

establishing a long-lasting relationship of trust and commitment.
 Ensuring style and fashion through awareness, passion, integrity and ethics
 Not only providing the best quality of work but also provide a comforting and
nurturing environment.
 To be a team, aware of good values, appreciative of excellent results and
constantly expert to the importance of consistency.


To determinably pursue growth and development professionally, personally,

financially by continuously improving our performance, products and business
efficiencies. We quest for expansion to create a better connection to touch the lives of
many people as possible. We strive to glorify God in all we do.

Goals and Objectives

Steven’s Beauty Center and Accessories aims to achieve mere goals such

 To increase profit by maximizing their abilities and resources.

 To be known in the industry by providing quality-based service.
 To satisfy the customers wants and need through communication skills.
 To attain growth by improving services.
History and Background

Steven’s Beauty Center & Accessories was established to focus on providing

hair & beauty services to everyone. It is located at E. Luna Street, Butuan City. The
business started on February 9, 2013 owned by Mr. & Mrs. Juanito B. Cabusao.
Steven’s Beauty Center & Accessories got its name from their youngest son. The
owner chose to put up this kind of business not only for income purposes but also to
provide the people especially the Butuanon a good beauty services with an affordable
price. At first, it was just a salon but as the year goes by the owner decided to expand
and now added Accessories to earn more income.

People love to beautify themselves and find some comfortable places which
they can relax and enjoy so Steven’s Beauty Center is the place that they are looking
for. They take pride to provide good services to people which everyone can afford.
Their full-service makes your stress fades away. Steven’s Beauty Center offers Hair
Rebond, Hair Spa, Hair Cellophane, Hair Color, Hot Oil, Hair Cut, Hair Do & Make-up,
Facial, Foot Spa, Manicure & Pedicure. Customer’s satisfaction is the major goal of the
business. Clients are pampered as they are given a good quality of services that
Steven’s BC provides. Beauticians are very friendly and well-trained which the
customer loves. Steven’s Beauty Center are also selling accessories such as Rings,
Bracelets, Necklace, Clothing Accessories and many more.
Organizational Structure

Salon Owner


Beautician Cashier/Financial Hair Specialist


Beauty Staff
Book Keeper

Cleaning Staff
Audit Objectives:

To be able to:

 Determine the current practice and process in the services they offer through
observations and interviews.
 Identify the scarcity of the business as to weighing their operations with the
standard by comparing the observations using the standards used.
 Suggest actions that would help them achieve the standards.

Audit Scope

To determine adequacy and effectiveness of the risk management and internal

controls of the organization, to ensure the achievement of the following management

 Proper identification and management of risks

 Compliance with the policies, procedures, laws/regulations and governance
 Effective and efficient use, and safeguarding of resources
 Achievement of the organization’s goals and objectives Internal Audit’s scope is
classified into two:
(1) Assurance and (2) Consulting activities.


Direct Competitors Indirect Competitors

1. Ruby’s Salon 1. Trendee Shop

2. Carlo Reyes
3. I Love CUT
4. Mandara Spa and Salon
Risk Assessment

Human Resource

Juanito B. Cabusao (Owner)

Mr. Cabusao is a silent but very observing type of person. He is the one who
oversees daily activities/operations in the salon. He wants work to be done immediately
so he can proceed to the next tasks or plan another strategy on how to catch more
customers. Mr. Cabusao handles his employees very well and has good relationship
with them. Mr. Cabusao is very likely to be a risk taker, he is a very positive man, that
he most of the time willing to do things or actions that he think can help his business
even though it involves danger or high risk to his business.

Elizabeth Escatron

Ms. Elizabeth is the one who is responsible for operating the cash register
and handling cash transaction in the day-to-day operations of the salon. Also, Ms. Beth
works as a part time beautician of the salon. She is strict and careful when it comes to
money matters as she is very trusted by Mr. Cabusao. Ms. Beth is a Risk Taker kind of

Renato Ladaran

Mr. Renato is the beautician of the salon; he also takes charge of the cash
register in case Ms. Beth is absent or on leave. He is very jolly and entertaining which
really helps to entertain the customers. If there’s no customer, he tends to invite
customers that pass outside the salon. Mr. Renato is a risk taker, he offers them
services and is really good in sales talking.

Joseph Nuñez

Mr. Joseph is a beauty staff of the salon. He is very obedient. And as we

observed, he just tends to wait if there’s a job that need to be done. He is a Risk
Leonora Maneja

Mrs. Leonora is the manicurist of the salon. She is very obedient and a
very polite person. She follows rules and very good in communicating to
customers. She is a risk neutral.

Steven’s Beauty Center & Accessories

What are the Who might be What is the What further Actions by
hazards? harmed and business actions is whom?
how? already doing? necessary?

Hairdressing Staff may get -Staff check -Always check Owners and
Products and eye or skin and follow the expiration staff
Chemicals irritation. instructions. dates of the
-Staff use
gloves to - staff should
protect their check
hands from customers
chemicals. comfort.

-Clients must - No chemicals

be well- to be stored
protected with above eye
single-use level.

Wet Hand Staff may -Gloves are -Staff will be Owner and staff
Work suffer from provided to asked to
dry skin or staff. remove hand
dermatitis. jewelry

Sharp Cuts and -All sharp - Owner/manager

Instruments grazes to staff instruments Owner/manager
and clients. are cleaned should always
with sterilizing check the
liquid. instruments and
follow the
-First aid kits sterilizing
kept stocked. procedures.

Lone Working Staff alone in -provide a safe Call in to owner Owner/manager

salon may working to confirm when
suffer verbal environment left salon to be
or physical for employees. instigated.
training and

Electricity Electrical -Staff report to -Owner should Owner/manager

shocks or manager any check the
burns may damaged plugs, sockets
possibly plugs or cable. and cable.
-Staff knows
where the fuse
box is and how
to turn the
electricity off in

Fire If trapped in -Fire -No flammable Owner/manager.

salon, people extinguisher is products will be
inside the placed inside displayed.
salon mays the salon.
suffer from
inhalation and
Internal Control

Internal controls are the methods and process through which a company
ensures that the organization is adhering to important policies and obligations.
In small business like Steven’s Beauty Center & Accessories, the business
owners are the ones responsible for the internal control.

1. Control Environment. The business encourages ethical behavior

among its employees/workers and creates appropriate policies and
procedures. The business owners also trust their employees enough
to delegate to them the management of the business in their day –to-
day operation; the owners also have full control of the business since
they are monitored on a daily basis.

2. Risk assessment. As what the auditors had observed during the visit,
the physical risks of the salon include its lack of security personnel’s &
CCTV cameras.

3. Control – the control of the operations are somehow prove to

fraudulent acts since the recording & custody are not performed by
different personnel, but by the same workers.

4. Information dissemination - This aspect gives way for outsiders (or

customers) to give their feedback or complaints against the business
with regards to the Products & Services they provide. The
management also conducts evaluation to its workers thrice a year

5. Monitoring of controls, mechanisms – the business owners ensure

that the workers always follow the proper procedures of the operation
according to the standards set.

Audit Program

Objectives Audit Procedures Output Date

To identify the Interview Information
problem Gathered
Observe Pictures of their
procedures and
To determine Taking pictures Pictures of services
current process they offer
Listing their current List of their
practices practices
To determine Comparing their The difference
scarcity ways of conducting between their
their business to procedures and the
standard standards