Page 215 - F1 - AB Integrated Workbook STUDENT 2018-19

Financial systems and procedures

Overview of systems

1.1 Advantages of formal systems

There are several advantages to having formal, documented systems that
staff must follow within the organisation.

These include:

 All transactions will be recorded in the same way, and the required information
will be recorded in the correct places.

 The ‘best’ practice, the most efficient way of recording transactions, can be
adopted by everyone.

 Staff can refer to the written procedures if they are in doubt as to what to do.

 New staff can be trained more quickly.

 The auditors can follow transactions more easily if they are recorded in the
same way.

 Transactions which have not followed the procedure, which could be errors or
frauds, may be identified more easily.

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