Sy’s Fish Company Risk Analysis Essay

As Sys avocation grows there are have bumps and that must be acknowledged and addressed in score to line operations run smoothly and efficiently. Below are the risks that have been identify and recomm conclusionations to mitigate them. fortune Sending documents to Sy via mail.There is a high luck that the documents could be lost and therefore the transactions never recorded. Mail ass hold up to a week to receive so the clock would be affected. Transactions would be recorded in the wrong terminus and adjustments would have to be made to correct this. good wordSy should implement an development technology system so documents can be recorded in a timely manner and non lost in the mail.Risk Return insurance policyThere is not a limit of days a customer has to move over the fish. A customer can order fish, and if they are unhappy three months later, they can return the fish for a full refund no questions asked. This is a risk because customers can take advantage of this poli cy therefore affecting sales revenue.RecommendationSy sells however fresh fish to customers. Because of this, he needs to change his return policy to 15 days. This pull up stakes ensure that customers do not wait to return fish months later after the fish has gone bad.Risk clerking and Job ResponsibilityAll of Sys bookkeeping is done by various employees from various stores. Having employees from various locations doing different parts of bookkeeping is sorry because not one person is held responsible. Transactions cannot be collaborated from root system to end until all the paperwork is received from for distributively one individual.RecommendationIf Sy plans on growing his business he is going to have to hire more employees to help with the bookkeeping. He should have separation of duties to avoid falsifying of information. All the bookkeeping should be done in one location.Internal controls should be set up for the process of recording transactions.Risk Accounts collectib le procedureNatalie holds all the heterogenous payable documents for payment at the end of the month. She records the document being received on the same day she issues payment. This is a risk because it effects what hitch the documents are recorded. Natalie pays all fishers in one lump sum kind of of separating each payment. This is risky because it could be recorded incorrectly and there is no way to know which order was input wrong.RecommendationShe should record each miscellaneous payable document on the go steady received and the date paid should be when the check was written. She should record each fisher payable document individually.Risk Bad DebtSy does not know how much each customer owes or when they will receive payment. This is a risk because he will not be able to account for bad debt.RecommendationHe should make an accounts receivable ledger to study which customers have not paid and how long they are past due. By keeping records it will be easier to account for ba d debt.Risk Payables checking accountMoney in the payables checking accounts that has not been claimed cannot be traced back to the vendor. This affects revenue recognition and is a risk because Sy does not know where this money is going.RecommendationThere should be a record of what vendors have cashed their checks. Implement a direct sedimentation system to pay vendors and fishers.Risk AFS securitiesThere is no documentation on Sys AFS securities. There are no footnotes or explanations on the beginning balance sheet (Appendix 1). This is a risk because external users do not know where Sys investments are going. If there are no footnotes or explanations for the security investors they might not want to invest.ReccomendationsSy needs to add additional disclosures to explain his security and what he plans on doing with it.