1. Terms of Reference

1.1. The researcher made investigation on the effectiveness of the internal Controls and accounting system of Cookridge Carpets Company. It also has some additional contents such as recommendations that helps the company to improve its strengths and weaknesses to protect the company’s reputation. 1.2. The researcher also investigated on the stakeholders of the Cookridge Carpets company, both internal and external. The stakeholders play a very important role in helping the company’s growth. 1.3. The report also investigates that the costs and benefits to Cookridge Carpets and stated that fraud is a
Cookridge Carpets has to make sure that it follows the Act to avoid penalties if the data is disclosed without any legal agreement or action. 4.5.2. Late payment law- This Act states that Cookridge Carpets company must distribute payments fairly among employees and must not delay any payments for that matter. Failure to do so the company might face very disturbing penalties such as fines etc. 4.5.3. Health and safety legislation- Cookridge Carpets must company must Comply with the Act by making sure its customers or employees are having a nice safely working environment free from threats or hazards that may affect their health. 4.5.4. The company’s Act 2006- This Act regulates that Cookridge Carpets must prepare financial statements and finalize them so that they are ready to be analyzed. Fraud Act 2006- Under fraud act 2006 a person may face penalties if they breach one of the sections 2 (fraud by false representation), section 3 (fraud by failing to disclose information) and section 4 (fraud by abuse of position). Cookridge carpets especially the