Functions of audit productivity software include electronic working papers, electronic sharing of schedules, calendars, and files, time and billing, reference libraries, and document management. Using electronic working papers is one way for an auditor to increase productivity as they can automate the planning stage of an audit. The auditor can minimize the time and effort creating manual audit papers and questionnaires and increase his or her efficiency. With the use of electronic working papers, the auditor can import the data of a client and electronically input audit adjustments. He or she is then able to produce spontaneously GAAP-based financial statements.
According to Vitez, O. (1999-2012) “The biggest impact IT has made on accounting is the ability of companies to develop and use computerized systems to track and record financial transactions. Paper ledgers, manual spreadsheets and hand-written financial statements have all been translated into computer systems that can quickly present individual transactions into financial reports.” Kudler’s Fine Foods REMS uses each module in the system to track, analyze, and report information to other business systems within Kudler’s for the purpose of marketing to the appropriate market, producing product cheaper and much more efficiently, and allowing each department better understanding of fund available. This has an impact on the organization structure so that time and money is not wasted and also has an external impact as customer are better serviced because the REMS allows Kudler’s employee to narrow in on the customer’s
This can cause money to be lost or accounted for which can cause loss of business. Cash registers should be used in all locations and they can also use the software program Microsoft Excel to keep track of employee hours as well as payroll. Employees should be given an identification code to access the cash registers and computers so that if any mistakes are made it will be easy to track which employee made that mistake. With any company it is so important to make sure all monies are accounted for and where it was spent. If Kudler’s were to handle payroll in-house it would save them money from having an outsource company take care of payroll for them.
Time and billing software allows the auditor to quickly record and bill the hours spent on an audit. Reference libraries are used to quickly find company-specific policies and procedures and to search for authority with a particular problem. Document management software has made online document storage readily available and practical. An example of document management software is a program that lets you scan documents into the system and store them
I would like to start before diving into the details of this accounting scandals, take a look at some of the tools that were used to first detect them which is include the sophisticated accounting systems and etc. Information technology which brought high tech computerization, digital storage and communication became very sophisticated, which made possible the accumulation of gathering of information in an instant. Recording and verification of accounting transactions in real time were made easier and more accurate, which facilitated the reconciliation of supporting documents versus sources, with very little effort needed. Federal regulators were provided with data that revealed the corrupt practices of high-profile companies and their CEOs. Their bankruptcies became inevitable as the Securities and Exchange Commission (SEC) and financial analysts began to see the signs of irregularities among numerous companies.
While these products are highly successful Microsoft continue to push the envelope to create and improve products that are synchronized with tablets, PCs, game systems, and phones in businesses and consumers to increase their productivity. Identify Strategic Initiative. Microsoft
The net sales also increased from year 14 to year 17 ending at $7,115,112. This showed to be very profitable with trend percentages at 103.7%. A2) There are certain risks a banker might be concerned with. Over the years the advertising expenses have increased from $243,000 to $255,600. The increase in advertising can be helping with increase in net sales which has also increased from 46,520,500 in year 12 to $6,858,600 in year 14.
Documents can be altered quickly if needed without disrupting the rest of the document. Spelling and grammar can be checked quickly using spell checkers. Businesses become more efficient when the use of IT technology is optimised. It also promotes a professional image to others. Section 2 – Understand how to manage electronic and paper-based information 1.
The assets on the sheet are company holdings. The liabilities are the salaries, accounts payable, and notes payable. The balance sheet is a quick look at the company as a whole at any time which is usually over a specific period of time. The balance sheet should be available on demand for accounting managers to make decisions on where the company stands on dispensable cash and what can be used to purchase materials for inventory. The statement of cash flow tracks all the cash moving in a company during a specific accounting period.
Those statements are income statement, retained earnings statement, balance sheet, and statement of cash flows. All of which are reviewed as well to provide a complete understanding of accounting in today’s society. Accounting consists of identifying, recording, and communicating the economic events of an organization to interested users (Jerry J. Weygandt, 2008, p. 4). The purpose of accounting is to keep track of all financial events in the company for the internal users or management to make sound decisions regarding the business and also for external users such as investors