Since I have partially fulfilled the requirements for the BBA diploma, I interned at “Akij Bakers Limited” under your supervision. In completing the report, I have done my best to combine all my knowledge and convey all available details, and I have also tried to avoid unnecessary expansion of the report. It is hereby declared that the internship report An Analysis of Internal Control Management of Akij Baker's Limited has been prepared as part of the completion date of the BBA program of the Department of Business Administration, Sonargaon University (SU) conducted by Sajjad Ahmed, bearing ID: BBA1802014029 under supervision.
I would like to express my gratitude to all the people who helped me in achieving the title of my report, “An Analysis of Internal Control Management of Akij Bakers Limited” in Dhaka. Akij Bakers Ltd, one of the country's largest industrial conglomerates, has launched Akij Bakers Limited with an investment of Tk1,200 crore. The marketing of the new premium brand Biscuits Bakeman's formally commenced on Thursday at a program in the city attended by Akij Group Managing Director Sheikh Jamil Uddin.
Both Nabisco Biscuit and Bread Factory Limited and Pran-RFL Group together hold second place with 8% market share each. Other companies, including Ifad, Cocola, Pinnacle, Kakoli, Shifa and Kohinoor Industry, have also captured a significant share of the market. Md Shafiqur Rahman Bhuiyan, president of Bangladesh Auto Biscuits & Bread Manufacturers, said that small companies along with big brands have increased their investments at this time.
Finally, I saw that Akij Bakers LTD guarantees better administrations to the individuals of Bangladesh and they will add more to the improvement of the economy of Bangladesh.
Introduction
Origin of the Study
Objectives of the Study
Methodology of the Study
Primary Sources
Secondary Sources
The structural scheme of the concept can also be used to prepare a model of internal control system in various branches of the industry. It can also help to draw up a structural scheme for the general concept of internal control. The purpose of the study: to compose the definition of the concept of internal control system and to elaborate the structural scheme of the general perception for Lithuanian industrial enterprise.
Study methods: for the analysis of the views on control, internal control, the concept of the internal control system, systematic and comparative means of scientific analysis methods were used. The main problem of internal control is related to the definition of control conception and the identification of the place of internal control in an organization. Analysis of the concept creates conditions for further research, because it is impossible to form a model for assessing internal control if the object of investigation is unknown.
1 System - Internal control is a system that includes all parts of the control system that exist in the company and are managed to manage risks. In the previous chapters, the study discussed the existing internal control system of Akij bakers and their consequences. The result of the internal control assessment of Akij Bakers reveals the following control activities - Control over sales and procurement.
The study identified some control components or variables to measure the effectiveness of the control system. Thus, achieving control in the small independent variables will ultimately lead to successful or effective achievement of the 3 key objectives. Nevertheless, they do not pose any threat to the effectiveness of the internal control, as the overall score for all the key objectives is 0.
With effective and successful internal control in the organization, it is assumed that the overall performance of the organization will improve. The presence and proper functioning of all components of independent variables ensures the effectiveness of the internal control system. All independent variables are interdependent, but each affects the effectiveness of internal control systems.
These six control components are assessed before expressing an opinion on the design and effectiveness of the overall internal control systems. As we can note, all the measures of the effectiveness of internal control are zero, i.e. in the previous sections, the existing internal control systems at Akij Bakers have been described.
An internal control audit must be carried out, which must also be included in the company's annual report.
Scop of the Study
Limitations of the Study
Vision of Akij Bakers Limited
Jamil Uddin on Akij Bakers Limited (ABL): “We will manufacture and market high quality products that we ourselves and our family will always use; we will not only produce products for consumers in the market and let our family consume 2.4 Objectives of Akij Bakers Limited. The main objective of the company is to increase the market share in the related diversified products in Bangladesh and to ensure the quality and durability of the products to the potential customers.
Mission of Akij Bakers Limited
Objectives of Akij Bakers Limited
Strategies of Akij Bakers Limited
Products and services of Akij Bakers Limited
The structural scheme can ease the process of constructing a new model of an effective internal control system. Continuous changes in the scope, functions and roles of internal control make it possible to form a common definition of internal control and identify its place in an organization. Akij Bakers' internal control is described in Chapter 3 and an evaluation is taking place.
As mentioned in the previous chapter, we have expressed the effectiveness of internal control as a function of several large and small independent variables. Internal control processes (small independent variables) affect the effectiveness of internal control systems, which is subject to the defined objectives of the organization. The questions in the study are formulated to identify the existence or not of any internal control variable.
Each of the main independent variables of the model is defined using several small independent variables, which are used to assess the effectiveness of control measures in the projects, and detect internal control weaknesses.
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Introduction
Research of control conception
Analysis of the concept of internal control and its interpretation are essential for assessing the internal control system, because the concept of control is widely used not only in scientific research, but also in the daily activities of a company; therefore, the same view can have many different meanings and interpretations. A comparative analysis of the introduced concepts of internal control shows that the use of the concept of internal control is quite broad, as it is supposed to include not only the performance of the state, but also that of the private sector. Although the conception of internal control is defined in different ways and its different aspects are emphasized, the essential term remains the same in all authors. Definitions: Internal control is the inspection, observation, maintenance and regulation of the operations of the company.
The study examined management's compliance with established internal control mechanisms and identified the difference between expectation and reality. It is to note that internal control is an implied concept inherent in every entity. In the information and communication component of control, it was found that Akij Bakers does not include any report on its internal control and corporate governance in its annual report.
To ensure better management of the company, proper division of labor among middle management must be ensured.
The conception of internal control
Overview of Akij Bakers Limited
Akij Insaf Ltd., one of the largest industrial conglomerates of the country, has launched Akij Bakers Limited with an investment of Tk1,200 crore. Although this is an abstract idea, it increases the probability of achieving the goals of the organizations and adapting to changes in the business or operating environment. Akij Bakers Limited is a private company where the day-to-day operations are strictly controlled and the company is under the authority of the relevant ministry which amounts to greater control than any other private companies.
As per the requirement of Bangladesh Securities and Exchange Commission, Akij Bakers prepares quarterly reports before preparing annual reports. The government also conducts audits, conducted by the government's Commercial Audit Directorate, to detect fraud and embezzlement and to verify compliance with company rules and regulations before each payment and receipt. By measuring small independent variables, any weaknesses in the most important independent variables are detected.
The model includes the operating relationships that are considered to achieve effective operation of the six basic control components. To do this, the main control components are divided into smaller independent variables and those that fall under each of the identified main independent variables. Each major independent variable with a set of corresponding minor independent variables used as criteria for evaluating the effectiveness of controls in projects.
Each major independent variable and their respective minor independent variables must ensure consistency in the evaluation process. In the Risk Assessment component of control, the analysis identified that the management did not identify risks that affect the achievement of the objectives and criteria to determine which risks are more critical. Regarding the receipt of the journals from the sales and zonal offices and regarding preparation of the reconciliation statements.
Although the activities of the zonal offices are determined by the head office, their direct monitoring and supervision is still not possible due to the lack of a central integrated system. Although the overall control system is effective enough to achieve the goals of the company, there were still some minor discrepancies that may hinder the efficiency of the company. More training facilities for the employees can be provided to keep them updated with the practices followed by the energy sectors of the developed countries.
The activities of the CBA should be controlled more so that they cannot create undue pressure on the company's management for their personal interests. Management has not specified the objectives clearly enough. The management has not identified any risks that affect the achievement of targets.
Descriptions Of Control Established By Akij Bakers Limited
Evaluation Of Internal Control Established By Akij Bakers Limit
