The board’s action depends on regulations, laws and shareholders in general meeting. The auditor's role is to supply the shareholders with an objective and external inspect on the directors’ financial statements which form the foundation of that reporting system. The objective of the audit Committee is to raise the standards of corporate governance and the level of confidence in financial auditing and reporting by indicating obviously what it sees as the respective liabilities of those involved and what it believes is expected of
Financial accounting information is used for a.|investment decisions.| b.|regulatory measures.| c.|stewardship evaluation.| d.|all of these.| ANS: D PTS: 1 DIF: Easy OBJ: 1-1 NAT: AACSB Communication 6. Which of the following is NOT part of the financial accounting information system? a.|filing reports with the SEC| b.|reporting a large contingent liability to current and potential shareholders| c.|determining the future cashflows of a proposed flexible manufacturing system| d.|preparing GAAP financial statements| ANS: C PTS: 1 DIF: Meduim OBJ: 1-1 NAT: AACSB Reflective 7. Which of the following does NOT describe cost management system? a.|evaluation of segments or products within the firm| b.|emphasis on the future| c.|externally focused| d.|focus on effective use of
TABLE OF CONENTS INTRODUCTION PG 1 COMPANY EVALUATION PG 2 COMPLIANCE AND RECOMMENDATION PG 4 SUMMARY / CONCLUSION PG 5 REFERENCES PG 6 Introduction The primary objective of Accounting Ink, is to provide LJB Company with the required information to consider the regulations for converting to a publicly traded company. Within this analysis we will identify internal controls currently being used within business operation and the required mandated internal controls enforced by the Sarbanes Oxley Act. Internal Controls are established and or regulated by the Sarbanes-Oxley Act. There are six principles of internal controls 1) Establishment of responsibility, 2) Segregation of Duties, 3) Documentation Procedures, 4) Physical Controls, 5) Independent Internal Verification and 6) Human Resource Controls (Keller, 2012). Companies and their independent accountants or auditors should report the effectiveness of the companies internal controls based on these six principles.
The new description of internal auditing focus on corporate governance, especially the Board of Directors. This definition highlights internals’ audit role in assisting the entity to accomplish its objectives. As of the fact that the Board of Directors is ultimately accountable for the entity’s achievement of its objectives, the internal auditor’s influence is to deliver information to that group. (Colbert, 2002). The papers seek to empirical and statistically ascertain the impact of the internal audit in the corporate
LBJ Company | Analysis of the Internal Controls Systems for LBJ Company | Evaluation Report | | Table of Contents Introduction 2 Components of Internal Control 3 Internal Control Procedures 4 Going Public and the Sarbanes—Oxley Act of 2002(SOX) 7 Analyzing LBJ Internal Controls System 10 Conclusion 12 Citations 13 Introduction To the President of LBJ Company, We have evaluated the Internal Control systems adopted by LBJ Company in accordance with the standards generally accepted accounting principles in the United States of America, based on the information provided to us. To perform this evaluation we were asked to analyze the effectiveness of LBJ’s internal control. Therefore, we have completed a list of its strength points and weakness points, providing recommendations for improving the deficiencies founded. Another point that was required from us was to provide information of any new regulations the company will need to implement in order to go public. To begin with this report we will first provide the description of the term Internal Controls, what it consists of, its components and procedures.
GAAP stands for Generally Accepted Accounting Principles. The common set of accounting principles, standards and procedures that companies use to compile their financial statements. GAAP are a combination of authoritative standards (set by policy boards) and simply the commonly accepted ways of recording and reporting accounting information. GAAP are imposed on companies so that investors have a minimum level of consistency in the financial statements they use when analyzing companies for investment purposes. GAAP cover such things as revenue recognition, balance sheet item classification and outstanding share measurements.
Basis of Preparation The financial statements are prepared in accordance with the applicable law and under the convention of Historical cost. The preparation is governed by the Generally Accepted Accounting Principles (GAAP) rules and the regulations from the Association of Chartered Certified Accountants and Chartered Institute of Management Accountants (CIMA) 3. Basis of Consolidation The following financial statements are those of the company and its subsidiaries up to the end of the 2011 financial year. Results of subsidiaries disposed or acquired in the course of the year are included in the income statement up to the disposal date or from the acquisition date. Joint ventures are the undertakings that the company has a long term interest and shares its control jointly with another entity (Kones 2009, 45).
You must reference all the sources of information used in your assignment. Requirement: (AC1.1) Explain the purpose and use of different accounting records. Briefly explain why it is needed and how it is used to record all the business transactions in an organisation like Tesco (PLC). (AC1.2) Assess the importance and meaning of the fundamental accounting concepts within the context of your organisation. (AC1.3) Evaluate the factors which influence the nature and structure of accounting systems of Tesco Plc.
Managerial Accountants should calculate net income or loss in a manner that accurately reflects the closest true costs and profits as determined by the International Federation of Accountants (IFA). To effectively help Management Accountants do this, the IFA has set in place a code of conduct that should regulate the integrity, competence, confidentiality, and credibility of a corporation. Introduction To fully understand the ethical issues of Managerial Accounting, you must first assess the difference between Managerial Accounting and Financial Accounting. Financial accounting is used for to present the status of the company to external sources such as board of directors, investors, auditors, and for reporting purposes as well. The financial side of accounting is used to represent the company’s current standing based on the past profits, net income, bad debts, and current ratio of assets to liabilities.