What is meant by comparability when discussing financial accounting information? a. Information has predictive or feedback value. b. Information is reasonably free from error.
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.
When prioritizing investments, it is vital that they are characterized and determined accordingly. Risk Assessments will have a role in this activity. The Risk Assessment will place a ranking system as to which risks are worth protecting and how cost effective mitigation will be. The issue with this activity is that some vital risks can be overlooked due to differing opinions. It also must be approved at the end of the activity to verify if it is done correctly.
“The more an account exceeds planning materiality, the greater the likelihood it should be considered a significant account, even when the qualitative risk factors are low.” However, this doesn’t mean that an account that exceeds planning materiality is automatically a significant account. Qualitative factors may also lead auditor to consider an account to be significant even if this account or disclosure is less than planning materiality. According to Delmoss Watergrant’s policy, accounts are considered to be significant if they are impacted by inherent and fraud risks that have a reasonable possibility of resulting in a material misstatement, either on an individual or an aggregate basis. [b] What qualitative factors might cause an account that is otherwise relatively small quantitative Some accounts might not be quantitatively significant at any point in time, but they include significant activity. Under this situation, these accounts should be considered significant accounts.
Develop and document, on behalf of an organisation for which you do or might work, a detailed process whereby it will be possible to investigate, identify, assess, and include the needs of customers in planning processes. Activity 1.docx How can quality, time and cost requirements be balanced? It's all about the expectations of the customer and what they intend on using it for. If they pay a premium price for a product then they expect it to be of premium quality and a quick turnaround. If the product is of low value, then the quality expectation isn't so great.
The documentation issue consists of notating the system with accurate information in a timely manner. System functionality includes the mainframe system Clarifire that was purchased to hopefully make the process flow smoother. Though this was a positive gesture, the system functionality possesses bugs that hinder the workflow throughout the
While this adds to the usefulness, since reports from one period are comparable to reports from another, it also aids in analyzing reports for this same reason, too. This means that certain methods can be used for a single item. If a method needs to be changed, this is something that would then have to be clearly explained and illustrated through disclosures. This can only happen as long as the entity can justify the use of an alternative accounting principles, and this entity must be ready to defend the change, which should not be taken
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). The information is important to investors, managers, banks,
Auditing is concentrating on material part of an association with a plan to make sensible assurance that the framework portrays financial actuality in an accurate and reasonable way. The same underlying guideline with not many varieties is appropriate to different types of reviews incorporating accounting and monetary reviews and quality control reviews. Our firm's accounting audits includes and independent evaluation on the Management’s ability to present true and fair financial statements that are free from material misstatements. A analysis of accounting process employed by The Client necessarily entails such objective. We perform our auditing activities with fairness, diligence and integrity in order to uphold our role as a guiding partner to The Client in the process of identifying weak internal control areas by suggesting improvement to streamline the
The audit for the financial statements will include evidence supporting amounts and disclosures in statements, examining, accounting principles used assessment, estimates made by management, evaluating all of the financial statements overall. The internal control over financial reporting audit will be acquiring an understanding of internal control over financial reporting, evaluating and testing the design and operation of the effectiveness of internal control and conducting procedures as necessary. The internal control over financial reporting within a company is meant to provide a reasonable assurance as to the reliability of financial reporting and for the preparation of the financial statements for external purposes in accordance to the generally accepted accounting principles