The FASB codification system provides a simple way for accounting professionals to access authoritative accounting standards. The FASB codification system is an advanced application that allows users to access the authoritative content, perform research, and submit feedback. It allows accounting professionals to research standards by providing utilities to view content by browsing by topic, joining related content, and reducing the amount of time to research information (FASB Accounting Standards Codification , 2013). The codification system also includes any relevant SEC guidance that is found in separate sections of the codification system. Any accounting literature
Merliss wants to be sure that all reporting for this transaction is proper and transparent. The company asks you to research disclosure requirements related to its capital structure. A) Identify the authoritative literature that addresses disclosure of information about capital structure. Statement of Financial Accounting Standards (SFAS) No. 129 This statement sets standards for disclosing information about an entity’s capital structure.
Merliss wants to be sure that all reporting for this transaction is proper and transparent. The company asks you to research disclosure requirements related to its capital structure. A .Identify the authoritative literature that addresses disclosure of information about capital structure. Statement of Financial Accounting Standards (SFAS) No. 129 This statement sets standards for disclosing information about an entity’s capital structure.
The purpose of the FASB Codification System according to FASB Online FASB codification system (2009-2012), it is to integrate and synthesize existing GAAP and not to create new GAAP. What are the Nine Content Areas located in the FASB Codification System? The nine content areas located in the FASB Codification System are 1) general principles, 2) presentation, 3) assets, 4) liabilities, 5) equity, 6) revenue, 7) expenses, 8) broad transactions, and 9) industry. Under the General Principles content area the item that is found is Generally Accepted Accounting Principles. Under presentation content area the items that are found are Presentation of Financial Statements, Balance Sheet, Statement of Shareholder Equity, Comprehensive Income, Income Statement, Statement of Cash Flows, Notes to financial statements, accounting changes and error corrections, changing prices, earnings per share, interim reporting, limited liability entities, personal financial statements, risks and uncertainties, and segment reporting.
Reference libraries consist of a database populated with company specific policies and procedures in addition to authoritative audit, tax, and consulting rules. Having this database accessible by the web or CD saves the auditor time thereby increasing productivity. Last, document management is made easy with audit productivity software. An auditor can store documents such as
The database is broken down into nine different categories. These categories are customer, inventory, item, order, order line, store,
As an auditor, understanding and testing internal control over financial requires knowledge of standards applicable to the corporation established by GAAP or IFRS. Section 404 of the Sarbanes-Oxley Act requires mandatory reporting on internal controls by management and independent auditors. To obtain a system of internal control as mandated by Section 404 of the Sarbanes-Oxley, policies and procedures designed to provide reasonable assurance of the companies’ effort in achieving its objectives and goals. Committee of Sponsoring Organizations of the Treadway
The audit for the financial statements will include evidence supporting amounts and disclosures in statements, examining, accounting principles used assessment, estimates made by management, evaluating all of the financial statements overall. The internal control over financial reporting audit will be acquiring an understanding of internal control over financial reporting, evaluating and testing the design and operation of the effectiveness of internal control and conducting procedures as necessary. The internal control over financial reporting within a company is meant to provide a reasonable assurance as to the reliability of financial reporting and for the preparation of the financial statements for external purposes in accordance to the generally accepted accounting principles
What is the purpose of a financial statement audit? c. To provide assurance that the financial statements are reliable. 24. Who is responsible for the design and operation of ICFR? b. The company’s management.
The Financial Accounting Research System (FARS) is a system that contains six different databases that provide accountants’ access to official guidance to Generally Accepted Accounting Principles (GAAP). The purpose of FARS is to give accountants an effective and efficient way to research accounting literature that is up to date. It also helps to ensure data accuracy will all of the different accounting standards and laws. The FARS is beneficial to the accounting profession being a major database to search for all needed information. Without this type of database, accountants would be forced with searching many different databases with the possibility of coming up with conflicting and/or inaccurate information.