Develop a sales budget, profit budget. cash flow budget am using electronic
spreadsheets (as separate worksheets) making sure each budget is divided into quarterly periods
and that you use previous financial data to determine allocations for resources.
i. Ensure each budget you prepare complies with the organisational and policies and procedures
as provuded. MTV-L751″.
b. Develop budget notes that include: Muzfl‘i.
i. identification of reasons for previous profits and losses
in. your comment on the effectiveness of existing financral manaoement apprgacbgs
iii. all assumptions and bases that have been made or used to form budgets
iv. aweLeyanL notes regarding implementationaIlQJDonitoring of budget expenditure.
Task ll
Carl Kerns is one of the directors of the board. He was appointed by the board to conduct an internal audit of
operations to look for weaknesses in the internal control system. Based on Carl’s report the student needs to
develop standard operating procedures (SOP) for
V. ._ fi
A. Employee timesheets ‘ Mob/6″ Wc’é‘uvu
8. Cash receipts (plot/”P656
C Issuing cheques (2 EF/fmh ”Aid (M a! 43
[Amiga “(Q/v J/u. SOP
D. Maintaining appropriate general ledger accounts and cost centres
E. Bank reconciliations WM fCW‘C A \\-r\.-.4«‘\-7/
F. Audit Trails
Task Ill
1. Communicate information regarding the budget and answer a series of eight questions (see end of this
task) in written as agreed with your assessor.
Task IV
1. The CEO wants to be given all the budgets except for the aged debtor’s budget which the accountant and
accounts receivable clerk can monitorl The CEO produced a summary of the current business plan that
covered the budget year to highlight some of the key goals. objectives and strategies he would like
incorporated into the budget.
