The AICPA is recognized as an authoritative source used to clarify accounting principles by offering guidance on official standards, new developments, and specific advice for accountants. According to our text, the Principles of the AICPA Code are responsibilities; the public interest; integrity; objectivity and independence;
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).
This determines whether requirements for specific agreements are maintained to be in compliance with specific needs. This can minimize a costly error if not items are not followed to agreed upon measures. An example can me requirements established when a note was developed with a national bank. Lastly, the most widely known type of audit is of the financial statements, these are reviewed and compared to the Generally Accepted Account Procedures (GAAP). This allows outside investors and shareholders to maintain confidence in your company.
D. Available evidences regarding clearing of payments or transactions that took place between when the mailed payments were received and the specific dates when the payments were posted in the company’s bank account. In view of the above, as the CFO, accounts receivable can be brought back in line by executing the under mentioned activities in the correct departments. 1. Preparation of aging accounts receivable schedule and to review of existing credit collection policies, standards and terms.-the finance department is responsible for this activity. The objective of this activity is to characterize existing accounts receivable and to classify them in the correct manner of current and outstanding.
Financial ratios should be analyzed by a professional accountant. In order to keep a record of the company’s financial health, ratio analysis is used as a tool. Ratio analysis determines and interprets how efficiently a company is working in terms of its finances. Ratio analysis presents a simple and comprehensible understanding of the accounting variables. It is an effective tool for understanding a business’s success in terms of financial undertaking and
These standards are redundant of what are normally expected in a CPA. The Standards of Fieldwork standards can be seen as a redundancy as well, but they are more detailed of what are expected in an auditor. The Standards of Reporting standards are unique to this kind of service. An audit report of a public company is relied by many users prior to making financial decisions. These standards are important to maintain the quality of their reporting.
GASB and FASB Similarities GASB and FASB accounting are sets of objectives that proprietorship, government, and not-for-profit organizations follow in preparing financial statements. According to Weygandt (2008, p. 17) “both the GASB and the FASB have established objectives that circumscribe the functions of financial reports.” GASB and FASB objectives show whether a company is making enough profit to pay for expenses throughout the year, allows investors information to decide whether to invest or not, and how well the company budget complied throughout the year. Also, the two accounting standard boards show whether management is complying with all aspects of the objectives. GASB and FASB accounting have differences that individuals need knowledge about to prepare financial statements for government and not-for-profit organizations. GASB and FASB Differences Accountants and individuals, who work in accounting fields, need to know the differences between GASB and FASB.
Reporting Practices and Ethics Paper Sharon Tucker HCS/405 May 13, 2013 Elizabeth Caissie Abstract The implementation of financial reporting and ethical standards are crucial for the growth and progression of an organization. Reporting fairly and accurate data will help control measurements that may address theft and/or fraud within the structure. Ethical standards are vital for the development in an organization’s set rules and policies in having quality in the services provided including integrity, values, and delivering effective outcomes in honesty. Generally accepted accounting principles (GAAP) are set guidelines which indicate rules, regulations, and procedures that are implemented for the maintenance and/or monitoring records. An organization that provides a financial statement to the public, investors or government funding entities must follow the set standards developed by Financial Accounting standards Board (FASB).
So, for example, an accountant must get their sums right and apply for the right tax exemptions for their clients. In the same way, a care provider is expected to be trustworthy, in accordance with their code of practice, and apply suitable skills when carrying out care services. As part of duty of care support workers should: * keep your knowledge and skills up to date * provide a service of no less quality than that to be expected, based on the skills, responsibilities and range of activities within your particular work or profession * be in a position to know what must be done to ensure that the service is provided safely * keep accurate and up-to-date records of the care and
In this paper, the purpose of accounting and the four financial statements and how they correlate with each other will be discussed. Finally, the subject of internal and external users of financial information will be identified. The Four Financial Statements Accountants have the ethical responsibility to report financial information accurately. The information given to users should always be reliable. Furthermore, report information should be presented to users in an easily,