Internal auditors guarantee that the internal controls are sufficient and calculate the company’s financial and information systems for accurateness. A series of audits such as financial statements, fraud, compliance, and operational can be made with the hiring of an internal auditor. The most beneficial audit for Whitfields Company would be an operational audit. Operational Audits can be done if upper-level management thinks that there is a need for operational improvements. It is a review of management and how operating procedures work.
Pro forma financial information is generally used to illustrate the effects of transactions such as business combination, and change in capitalization. There are countless reasons on why companies use pro forma statement in their business, the most significant is the planning and control received when using pro forma. The process of using pro forma statements are less time consuming, they help businesses evaluate and make a better distinction between business plans (Scarborough, Wilson, & Zimmerer, 2009, p. 196). Pro forma statements are an excellent outlet for resources that will help a business forecast expected earnings should the company chose to merge with another company or even if the company wanted to sell off part of it operations (Scarborough, Wilson, & Zimmerer, 2009, p. 196). The pro forma statements are commonly used when applying for a business loan.
The operational audit studies the specific parts of an organization with the purpose of measuring its performance. Performances are measured in terms of effectiveness and efficiency such as auditing shipping and receiving or the sales departments. The benefit of these types of audits can positively affect the profitability of the organization. The financial audits, which we are doing, consist of auditing financial statements. The purpose of the financial statement audit is to ensure the entity being audited is preparing the financial statements in conformance with General Accepted Accounting Principles (GAAP).
Inventory and warehouse cycle Inventory accounts for a large portion of a company’s assets and is one of the more significant accounts presented on the financial statement. The effects of inventory can complicate physical control, contributing to more time spent when conducting the audit. For that cause, when constructing audit programs for inventory, the auditor should want to develop a plan such where risks are reduced to acceptable levels for the inventory cash cycle. Such a plan includes description of nature, extent of the planned risk assessment procedures, and above all, timing. In preparing the audit program for Apollo Shoe, Inc. the auditor should consider the primary objective which is to provide assurance to the stakeholders, stockholders, and other interested parties that the financial statements fairly account for raw materials, finished goods, work-in
Financial Statements ACC/280 May 01, 2012 Edward Vargas Financial Statements Accounting is extremely important by monitoring the functions of the companies, and allowing them to make appropriate financial transactions and decisions. Some areas of accounting can seem confusing and difficult but in the end the outcome is clear and concise. There are two basic forms of accounting known as; financial and managerial accounting. Financial accounting responsibilities are to follow the General Accepted Accounting Principles (GAAP) that is regulations for investor relations, creditors, and taxation purposes, whereas managerial accounting is for internal evaluation. There are different functions and categories that accounting
Assignment 1: Economic Basics (24.0 points) 1. Describe two examples of important things that financial planning skills can help you do, and explain why these things are important to you personally. (4-6 sentences. 2.0 points) Financial planning skills can help you acquire more in term of finance and can also help you secure what you have. When you have skill to plan, you are aware of how to manage your account hence adding on your profit.
Balanced Scorecard Organizations and upper-management often use a Strengths, Weaknesses, Opportunities, Threats, and Trends (SWOTT) analysis model to concentrate on the company’s competitive advantages, their possibilities, evaluate how to improve susceptibilities, and avoid coercion. Organizations depend on SWOTT analysis to remain successful in their industries. For a business to be successful and sustain their performance, the entity is obligated by their external environment to generate strategic objectives and constantly evaluate its vision and mission. Organizations must reflect on their mission and vision frequently to assess each for validity, consistency, and making sure the objectives are components useful to the desired vision. Businesses require a tool to measure the execution of objectives.
COSO Plan Adoption Law/531 May 21st, 2012 Elizabeth Harrison COSO Plan Adoption Identifying and minimizing risk is essential for an organization to succeed. During the planning process an organization should adopt a structure for its corporate compliance plans to identify and minimize risk. Organizations can create their own plans or rely on organizations that specialize in enterprise risk management. The Committee of Sponsoring Organization of the Treadway Commission (COSO) is an example of an organization that offers structures of enterprise management. The purpose of this paper is to review and identify the most powerful recommendations from COSO and summarize the benefits of adopting the COSO structure as a corporate compliance
Typically with large companies, a contract administration can be used to "put procedures in place to properly keep track of the myriad of documents, drawings, and cost and schedule control information that is generated during construction" (Harmon & Stephan, 2001). More importantly, a "proper contract administrator can manage these efforts and ensure that procedures are followed" (Harmon & Stephan, 2001).The benefit to this is that a company "saves time and money " when proper contract management is used and contract administrators are used to perform these jobs. The development of a contract plan along with using contract administrators can also affect any legalities associated with it. Ensuring that the correct people are in place who have the ability of full understanding of the contract and all of the legalities that go with it will help to protect the company. Developing a professional contract administration plan leaves no responsibilities to question.
Target appears to run on a functional organizational structure. Organizational structure is important because a good structure allows effective communication and inspires departments and groups within the company to work together. It also creates a hierarchy of responsibility and allows the company to grow in a well-organized style. There are several factors that influence organizational structure. In order to create and maintain an efficient organizational structure, you must first understand the factors that go into