1.

FINANCIAL STATEMENT REVIEW OF AUDIT FINDINGS

AUDIT FINDINGS
A. CASH DISBURSEMENT 1. No proper authorization of Cash Disbursement
2. Not all expenses are substantiated by receipts
3. Unauthorized disbursement and expenses
4. No scheduled follow for paying various expenses
Resolution /
Recommendation:
1. Should establish a Petty cash fund = P 2,000.00 and nominate a Petty Cash Custodian
2. Buy Petty Cash Voucher
3. Imprest Fund - Record expenses upon replenishment
4. Establish maximum amount for PCF = 500.00 and below
5. Reading fee, rebates, professional fees, salaries, bills, major repairs or purchases should be approved before disbursement

B. CASH RECEIPT 1. Receipting is not centralized, handled by two persons.

2. No daily sales deposit done
3. Offsetting of Sales against expense
Resolution /
Recommendation:
1. Receipting should bet centralized.
2. Deposit should be done daily if possible
3. Should not offset Sales against expense, sales should be deposited intact and expenses should properly be processed before issuance of
cheque.
* should have 2 Signatories

C. CAPITAL
CONTRIBUTION 1.Contribution was given on different dates and no specific sharing scheme

Resolution /
Recommendation: 1. Draft MOA to document sharing of profits and losses
2. Additional capital contribution of existing partners should be based on the scheme approved by owners, new investors