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).
Normally, a reconciliation is required between the proprietary fund financial statements and the business-type activities column in the government-wide financial statements. C. Statements include the Statement of Net Assets (Balance Sheet); Statement of Revenues, Expenses and Changes in Fund Net Assets: and Statement of Cash Flows. D. The Statement of Cash Flows may be prepared using either the direct or indirect methods. 7. Which of the following choices regarding the fiduciary fund financial statements is true?
Nontax issues include Responsibility for Liabilities, and Rights, Responsibilities, and Legal Arrangement among Owners. The responsibility for liabilities depends on the type of entity CCS chooses. “Under state law, a corporation is solely responsible for its liabilities. Similarly, LLCs and not their members are responsible for the liabilities of the business” (15-3). General partners, organized as a Partnership, are fully responsible for liabilities while Limited partners are not.
Recommendation Brief for an Internal Accountant ACC/544 February 22, 2013 Fred Johnston Internal Auditor Recommendation Brief When a company like Whitfields has an out-of-control system they are subject to audits by the Securities Exchange Commission (SEC) regarding their financial statements. The company can form a hiring team. The hiring team can consist of three or more internal auditors. An internal auditor will add value and help improve the company’s operations. Some of the duties would be Evaluate controls, advising managers, evaluating risk, analyze operations, confirming information, and reviewing compliance with the SEC.
There are three specific types of audits that my firm has to offer. The first is an operational audit; an example of this would be in evaluating the payroll processing completed through computer programs. The benefit of performing this type of operational audit is to establish if it is effective and efficient in operational controls. Another audit that can be performed by the firm is an compliance audit. This determines whether requirements for specific agreements are maintained to be in compliance with specific needs.
A good _________ enables an accounting manager as well as auditors to follow the path of the data recorded in transactions form the initial source. 14. A control activity of an internal control system that focuses on structuring work assignments among employees so that one employee's work activities serve as a check on those of another employee is called ______________. 15. What kind of analysis should be performed when considering if an internal control procedure should be implemented?
1. From a tax perspective, and disregarding other issues such as limited liability, does it always make sense to operate businesses in a separate business entity? When might it be better to be a sole proprietor? The issue here is if it always makes sense to operate businesses in a separate business entity and when might it be better to be a sole proprietor. According to Smith, Harmelink & Hasselback.
This information can then be used to hold the organization accountable for its success or failures. In addition, the MD&A provides a brief overview of managements take on the financial situation of the organization and outlines the impacts of various governmental activities on the organizations
Duties which may be assigned to the audit committee by the board of directors other than those associated with the annual audit, may include: • monitoring the activities of the internal audit staff. • seeing that any recommendations made by the external auditor are acted upon by the internal auditors. • reviewing the design of the company's control systems. c. The audit committee should act as an overseer of the company's internal audit staff. The audit committee would be concerned with such matters as the scope of internal audits, the completion of assignments, and discussion of the results of reviews conducted by the internal audit staff.
This expression is also used as a general evaluation of a firm's overall financial health over a given period of time, and can be used to compare related firms across the same industry or to compare industries or sectors in aggregation. While evaluating financial performance for our companies we can take help of the financial ratios as well. According to Barron the performance of a business enterprise is affected by its strategies and operations in market and non-market environments. (Baron, 2000) Financial ratios are an important element in determining the performance of an organization. Financial ratios should be analyzed by a professional accountant.