A&V Safety, Inc.

(Case Analysis)

Bryle Jay Lape &

Ai-rah Marie Migue
Rationale
 Background of the Study
A&V Safety, Inc., is a growing company specializing in the sales
of safety equipment to commercial entities. It currently employs 200
full-time employees, all of whom work out of their headquarters in
San Diego, California. During the summer, the company expands to
include about 10 summer interns who are delegated smaller jobs
and other errands. A&V currently competes with Office Safety, Inc.,
and X-Safe, who lead the industry. Suppliers for A&V include
Halotron Extinguishers, Kadelite, and Exit Signs, Inc. A&V attempts
to maintain inventory levels sufficient to service two of sales. This
level has shown to avoid stockouts, and the excess inventory is held
in a warehouse in a suburb of San Diego.
 A&V has a legacy accounting system that employs a
combination of manual procedures supported by
standalone PCs in the various departments. Recently it
has experienced business inefficiencies that have been
linked to its antiquated accounting system. The
management reviewed its procedures for compliance
with the Sarbanes-Oxley Act and assessed the things
needed to be improved.
 Statement of the Problem

How can A&V Safety company improve or revise

their current systems or internal control to prevent
business inefficiencies?
 Point of View

This case has been viewed through A&V Safety

Company’s perspective.
 Objectives
1.To analyze the company’s current system regarding its
expenditure cycle.

2.To provide necessary revisions to the internal control of

the company.

3.To apply the revisions with computer-based system for

better management control and efficiency.