In Improving weakneses on the internal control PCI Sdn Bhd should develop more comprehensive Standard of Procedure on preparing Purchase transaction also the accounting preparer role treatment. Refer to the first problem occur where planning section should not easily give MMR to En.Razi without any proper authorization, there should be the MMR must be authorized by their head department first before sent to En. Razi to recheck the exactly amount and sent to his manager to double check it and be signed by his Chief Financial Officer. This may show how effective and efficient PCI Sdn Bhd management on heartly running well these business. *
Second problem is all the staff action lead to not understanding their job description and specification. Where the work should be prepared by the staff not done as said by role, in order to make higher effective internal control, spreading job description and specification to all the staff, if necessary bring this matter to Human Resource Department on judging to hired another staff to support efficient management work or terminate any staff that no need to use in the office. * Third problem is the easier signature approval by General Manager towards Purchase Order on RM 100,000 below. PCI Sdn Bhd is the company running the business using high shrink material such as cuprum which it has higher value in the market at any certain time. To make those things not missing or have any probability involving in misconduct by the General Manager, the authorization should be done by Chief Production Officer which is the higher level of department production.
He could be responsible towards the inventory to be in and out to production, as the chief this responsible may gain his concern on expense the company money towards the necessary place only and not waste it. Also, If necessary the Managing Director can assigned each cheque been authorized by two person from the appropriate department. * Lastly, any cheque been approve by Finance Manager which the post is lower than Chief Financial Officer. Same goes as the case of approval cheque below than RM 100,000. Eventually in PCI Sdn Bhd, showing the top managements are not have any role on involving their self towards the management work. Eventhough, normally they have option to playing their role as worker on make sure the work done properly and high effective or act as supervisor that only rely on surface of work done by the lower level management. To be a good leader they shouldbring the team to the company goal. So, to make the internal control can be more reliable and valid, the cheque should be approve by the Chief of Financial Officer to make sure the money not be manipulate by the junior staff. Also, the system not be manipulate by them. * Same goes with the approval of cheque, the cheque should be approve by CFO and managing director. It shouldn’t be approved by general manager.