Pakistn Medicos: Client

Overall story:
Two owners (brothers; Javid and Naeem) and 10 employees seen, 8 at Medical store and 2 are
in inventory store (Godam). It was observed that both brothers are not educated enough to
understand the IT system, controls deficiencies and dont know how to solve the inherent
limitations of some operations (e.g. Most of the time suppliers good are received at medical
store but invoice comes after some days and vice versa, which often results into wrong good
quantity entered in computers and sometimes dully recorded, and later on result into stock
Talley problem, accused of theft, and even have to face stock out situation) many times seen.

Most of the employees have been working continuously for past 20 years, so they are well
aware from the system, their integrity may be questioned?
Duties of all Employees:
Two out of 10 employees are responsible for recording the sales into computer bespoke
software which automatically update the stock balance at store and then they further issue the
slip.
One out of 10 employee records and update the accounting system.
One out of 10 responsible for giving orders to the suppliers after the owner signature on the
purchase order.
Other two out of ten employees give the demanded goods as per slip, against which customer
have paid. After signature/checked goods are returned back to the customer. Other Two
employees help in giving the goods to the customers from different cabins.
Two out of ten employees at store room, are responsible for the stock receiving, counting and
wring down in the simple plane paper and then they give it to the accountant in the medical
store who update the record on computer about store.
Existing Process, Controls and Deficiencies are observed:
1). When the required goods that were ordered are received at store(Godam), ideally these
should be counted and matched with the invoice, if invoice also received, but generally
invoice is not received along with the goods, so create problems. Store keeper wrote down
the quantity at plane paper and intimate the accountant who record these in computer system
to confirm that what quantity, quality, type of goods are available in store. Once the goods are
sold, through issuing invoice, goods against invoice at store are automatically updated.

2). Customer comes and request for the goods, two employees issue the computerized invoice
against these goods to the customers and in this way goods at store automatically updated.
After receiving the invoice, customer goes to the counter and present the invoice, then the
one of the owner sitting at the counter collects the cash from the customer and returns the
invoice to the customer after stamped. Then customer goes back to the other employees who
provide him the goods mentioned on the invoice and after signing the invoice, invoice is

returned to the customer along with goods. In this way process completes. But this may
create following problems,

After taking computerized receipt, customer dont go the counter to give cash
but goes out of shop without taking goods. In this way goods sold have been
recorded in computer database but not actually been sold.
Sometimes even when customer has paid against the invoice, it is to be said
that actually goods are not available or some of the goods on the invoice are
not available. Then the employee orally said to the counter owner that please
return him the all or some amount as goods are not available, but actually
these are not updated in the computer, which again result into miss match the
inventory sold and at inventory.
No supervision is seen on the employees who are generating the invoices, they
may even give the favour to their own relatives/friends in this way that, they
give them goods without issuing the invoice. Subsequently it is said that store
keeper is accused of theft of the same goods and vice versa. E.g. no check on
the store keeper he may even involve in the stealing the goods and may
accused that computer operators are responsible for this. And even only one
CCTV camera inside the shop is seen and its direction is only towards cash
counter, not on these employees who may gave favour to their relatives so that
it can be checked that whether the goods are issued against the invoice cashed
stamped.
And invoice have only one part which is ultimately given to the customer, in
this ways it cant be subsequently checked that goods dispatched against only
cash received.
One of the store keeper is also assigned the extra work (i.e US aid program)
so sometimes when goods are received at store , other person count the stock
receive that results into wrong counting or misleading counting, that
subsequently results into the difference b/w the invoice quantity and goods
received.

Recommendations:
Followings may be the key solutions to the key problems.
1). Suppliers should forces to issue invoice along with goods. If they are still not be
convinced then the goods received should be matched with the purchase order before
recording into computer software, to ensure that all/only those goods received that were
ordered.
2). Two CCTV cameras should be there, one is already working. And other should be placed
to monitor the computer operators at point of sale to avoid the stealing of goods.
3). Invoice must have two parts, and both should be stamped after receiving the cash and one
should be kept by the person who dispatched the goods, so that subsequently it is to be
checked that valid sales have been taken place.

4). only those computers operators should be there who are well aware that what stock is
available and what not. If subsequently confirmed that goods are not available then computer
operators should ensure that entry has been reversed.
5). Initially invoice should not be handed over to the customer but one employee should
himself give to the person who is on the cash counter to ensure that customer has paid agains
and if not then these invoices can be subsequently reversed, so that stock tally and stock out
problems could be avoided.
6). If client can bear or its cost effective, then the complete new controls can be implemented
to address these problems.

Aslam o Alikum
Arshad bae, First of all Im very sorry for the late response. In fact, I was working on the
suggestions made by nearly all persons that have Dubai market involvement. They suggest
that One should get experience as much as one can, before entering into Dubai market. My
numerous PAC students who are working in different organizations offered me to make a
certificate of two years of experience without working for two years. Initially, I was trying to
attain, but in the end I could not gratify my inner self that was constantly questioning me that
will you start earning on the basis of immoral, unwise & bogus experience certificates? So
now superlatively, I have decided not to go with these certificates.
During this month, Im continuously working on the advancement of the skills on the
significant practical areas of a Professional Accountant, from my students who are working
on the key positions of different organizations. Im already proficient in the theoretical areas
of my profession. Now Insha Allah, I shall develop expertise in the following field so that
these could help me in the interview.

Making Books of accounts manually and using (MS-excel, Tally, Peach tree etc.)
Tax affairs (Income tax, Sales tax etc.)
Other general skills.

Im sending you my detailed C.V with the genuine experience and qualifications. After
reviewing my C.V, please do reply me that what type of favour you can provide me. One
thing I must say to you that please provide me the directions being a straightforward/frank
person, means if you can do favour for me then tell me simply Ill be very very thank full to
you, otherwise if you couldnt do any favour then negate me immediately as much as
possible, because in this ways I would save my time by thinking/working on other directions,
even I shall appreciate it too.
And please reply me that when should I get the visit visa from consultants? Immediately or
after your response? Im waiting for your reply.
Best regards,