Developing guidelines for internal controls for inventory: a case study of a corrugated box production and distribution company in Bangkok

Abstract

The objectives of this research are to 1) Study the problem of internal controls for inventory of a case study of a corrugated box production and distribution company in Bangkok. 2 ) Develop guidelines for internal control of inventories of a case study of a corrugated box production and distribution company in Bangkok. Semi-structured interviews were used to collect data from a total of 31 key informants. Analyze data by classifying data types according to accounting activities, including purchasing and payable accounting systems. Sales and receivable accounting system Inventory accounting system and production cost accounting system. The research results found that Operations according to the accounting system related to internal control of inventories of the current case study company are still not consistent with good internal control principles. This is because the company has not yet clearly divided duties and responsibilities. Moreover, there was no preparation of accounting documents as well as document flow charts for use in controlling each system appropriately and efficiently. It was found that some products were lost during storage. This problem affects the working capital system of the business and thus, it is unable to use that information to make managerial decisions and prepare complete financial statements. The results of this research led to the development of guidelines for internal control of inventories As well as designing accounting documents for case study companies that are necessary for operations. In order for the case study company to obtain accurate and reliable accounting information. Makes you aware of information about actual inventories. Moreover, executives can use the information obtained to help plan, control, and make decisions efficiently.