Mystery of disappearing oil Essay

1. Assume the role of Fuad, the accountant. What changes, if all, would you recommend, in the management of the gasoline grade, to Mat Jon? Why? Be as explicit as possible.The good word regarding to the management of the flatulency station can divide into three major(ip) part, which is recording management, inventory management, and internal control. Because these problems can be directly or indirectly affect the performance of the ancestry. In ensn are to well managing a business, a skillful person with managerial aptitudes and ethical behavior argon required. However, the person who carrying the daylight-to-day operation of the business, Jamel, does non possessed it.RECORDING solicitudeInaccurate meat in gross revenue collectionBased on the cases, the Mat Jon found out that the gross gross revenue collection was greatly unlike for the beginning of July and ending of the July. The sales figures for first two days were credible good, it was around RM32, 000but it was dropped significantly in the end of the month, which is drop to RM14, 000 in 31st July. In 1st of July, the daily pump sales of leadless gun are RM34, 458.68, however, it already exceed the total sales of the day which amounting to RM 32, 220.40. Since the Mat Jon does not able to seek the explanation from his nephew, i shady there is high possibility sales was take place, but whitethorn be intentionally or unintentionally omitted recording. tributeI would kindle Mat Jon make a becoming reconciliation between the sales record, physical brace of leadless petrol and bank statement in articulate to found out the missing amount.Exceeding of the overdraft amountThe petrol station facing the shortage of cash and this is showed on the exceed set apart of the bank overdraft. Compare the daily cash sales receive with the amount in the bank statement, it showed that the cash sales that deposit into the bank are lower than the actual sales. The overdraft limitis only RM20, 000, but the y already overdraft for RM 21, 019.42. From the sales collection report, most of the sales is deemed from cash, so it is less likely the petrol station will facing the shortage of cash. It whitethorn be either fuddle theft of cash or intentionally manipulation by Jamel since the Jamel was felt nervous when Mat Jon questioning him. RecommendationMat Jon should pay all the cash received against the sales, and this could be done in daily. In addition, Mat Jon should assure installing a CCTV all around the petrol station in order to prevent theft of cash by unethical staff.INVENTORY MANAGEMENTInaccurate amount in origination balance reportIn addition, from the stock balance report, we found that the balance of the stock in the report is lower than the actual balance that the smart set should have. There are some shortfalls in the physical balance of the unleaded petrol. Jamel, who in charge in the petrol stationshould have trustworthy on the stock balances, so I assume that Jamel susceptibility be manipulate the figure in the stock balance report in order to gain self-interest. For example, he was paying out the cheque without obtaining any stock. RecommendationMatching the purchase order (PO), delivery order (DO), and invoices when payment is made. Mat Jon should track back all the supporting documents in order to take in the payment is made for the petrol purchased. In addition, this is related to the proper separatism of duties. Mat Jon should not give all the right and self-assurance to Jamel.Increased in cost of sales while the sales are dropping over years Based on the trend epitome report, the cost of sales was increasing over years but the sales were decline significantly. One of the possibilities is that the inflation causes the cost of petrol increase and so leads to the decreasing in profit. still this assumption is less possible in this case. This is because the performance of recent year could not reasonably explain the increase cost. Thi s might due to Jamel reported the cost of petrol athigher(prenominal) price and gain the differences for himself or, he transferred the cost to the node by raise the price of petrol, and thus loss of customers. RecommendationNegotiated with the supplier and propose a hedging agreement to hedge the petrol price to avoid the inflation. indwelling CONTROLThe role of JamelMat Jon left the management of the business intimately wholly to his nephew, Jamel and he did not pay more attention to the business. But recently, Mat Jon suspected that Jamel was doing something unethical to his business, and also found that Jamel was not up to(p) to manage the business. This raise the issue on the roles and capability of Jamel. Jamel does not have any direct interest in the business, so he might concern on his own interest instead of the revenue of the business. RecommendationMat Jon should not fully rely on Jamel as he does not have any direct interest in this business thus there is possibilit ies that Jamel wont put much apparent motion on the petro station business. Mat Jon can remain the Jamels scene just for the sake of avoiding the conflict between them, but he should monitor lizard the petrol station business by himself to avoid any electromotive force loss. Besides, this can also enable him to regularly reviewing the business, provided counselor to Jamel, and can find oneself the problems as earlier as he can.Impolite staffWhen they receiving the charge from their regular customer, Supramaniam, the attendant ignore him and alleged that his fuel indicator may be faulty. And when Supramaniam request to talk with the person in charge, but he was informed that the manager was not around. At the meantime, the supervisor of the petrol station, Sudin, however, could not provide the immediate assistance to the customer. So there is end up with increasing the customer dissatisfaction. RecommendationProvide proper training to the staff. This including provides guidanc e on how to deal with the customer complaint and solve the question from the customer courtesy. In addition, the person in charge of the petrol station, Jamel, can be assumed not come to work frequently. Therefore, Mat Jon can consider to install a punch card system to track the attention record of the employees.Segregation of dutiesMost of the problems is arise is due to there is not proper segregation of duties. When there is one person handling overly much of responsibilities, the fraud may occur. In addition, it will also curtail the performance of the person who handling too much of responsibilities because of the work overload. In this case, Jamel, as the sole person who managing the petrol station, was handle too much of duties so that he tend to manipulate the amount in order to obtain the personal gain. RecommendationMat Jon should have proper segregation of duties between the manager, Jamel and its supervisor, Sudin to enhance the performance of the petrol station.Jamel as a station managers, he should responsible for(p) in term of the inventory, pricing, recording, and also customer services. Hence, Jamel should responsible Daily operations at gas stations and fuel-selling convenience stores. To ensure that sufficient amounts of fuel are accessible,Ensuring stores are well-stocked,The fuelling equipment is functional,To ensure staff is available to meet customer needs,The payments for fuel and merchandise are processed and recorded properly. Ensure company policies are upheld, examine timesheets for accuracy, train new employees, go paychecks, make financial bank deposits and report financial transactions.Sudin as a station supervisor, he should handle the following responsibilities Supervise and co-ordinate sales staff and cashiers toavoid the theft of cash Assign sales workers to duties slip away payments by chequeResolve customer complaints and supply shortagesMaintain specify inventory and report to the station manager Prepare reports on sales collection