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.
3. Documentation: It is vital that all transactions have proper documentations. Your company’s current use of pre-numbered invoices is an appropriate measure for this internal control. Additionally, the purchase of an indelible ink machine for printing checks would provide another layer of protection. The use of such a machine would alleviate the risk of employees altering checks for personal gain.
General and Commercial Basis Accounting Principles Generally accepted accounting principles (GAAP) state the standard framework of guidelines for financial accounting used in any given jurisdiction; commonly known as standard accounting practice or accounting standards. These contain the rules, standards, and conventions that accountants practice in recording, summarizing and in the preparation of financial statements. Hubpages.com discusses commercial accounting, also known as profit accounting, defining that it performs mainly by profit and loss. The reporting for a profit organization is directed to the investors. ("The Principles of Commercial Accounting and Fund Accounting", 2011).
ANSWER After analysing the duties that the Dewy, Cheatem and Howe Law Firm have outlined for the post of an Office Junior / Administrative Assistant, I have come up with the following transferable skills, which I believe I could take from the outlined responsibilities: A. Ensure that all the office stationery, printer supplies are well stocked. In carrying out this responsibility, I should acquire the ability to: * Count, compile and observe supplies to ensure constant availability. * Take inventory of all the supplies coming in and being used. * Be financially accountable, by keeping financial records.
Accrual Basis versus Cash Basis Accounting Summary Any good accountant knows that every business has different financial reporting needs. In order to better understand how to accurately record financial transactions for all kinds of businesses, it is important to know the two principle types of accounting. The first is accrual basis accounting, and the second is cash basis accounting. These two methods of accounting are based on two opposing ideas on when and how transactions are recorded, and each also possesses its own advantages and disadvantages. In the accrual basis method, transactions are always recorded immediately.
Basically, it is used to anaylse the business as a whole and per section and to determine performance. It is also a requirement of the ATO. What are the expectations of managers and supervisors in relation to budget or financial plans? To maintain the budget and implement the financial plans into the business. This also includes educating staff about the responsibilities of maintaining costs.
The paper focuses on how budgets and performance reports assist the furniture maker in the decision making process, and how ethics might influence his decisions. In addition, the paper focuses on the most relevant accounting information necessary for appropriate business decisions. Budgets and Performance Reports A budget is a quantitative expression of a plan of action (Horngren, C., Sundem, G., Stratton, W., Burgstahler, D, & Schatzberg, J., 2008). Budget reports specify allowable expenditures of each business function, and allow the business to control costs. Performance reports depict the businesses complete budgeting management system.
Quality management at FedEx compasses all of its operations. also by adopting QAT’s Quality Action Teams who design work processes to support new product and service offerings. Question 2 FedEx common language of quality is People –Service-Profit (PSP). It articulates that when people are placed firs, service and profit follow. Another would be its QIP program which also articulates that quality must be a part of the way that FedEx does Business, not part of the time, but all the time.
For instance guidebooks or electronic records of resources and liabilities, income and expenses, profit and losses, Bank statements and any further relation of transactions associated with the business. Important records such as tickets, invoice, acknowledgments and other related documents issued or received from customers/suppliers schedules and accounting records should always be maintained and correct. Good records will allow you to supervise how your business is working from day to day, and take any action required to correct problems that become obvious. Moreover Records can protect workers and the agency particularly from later claims of negligence. If good records are not kept this will result in major problems for the business.
The audit must be properly planned and if there is anyone assisting with the audit they must be supervised accordingly at all times. 2. There has to be a complete understanding of the entity and the environment that is being audited, internal control must be obtained in order to know the risk of misstatement of the financial reports whether it is due to fraud or just a simple error. 3. Audit evidence should be