Less important issues are handled by means of a correspondence audit. If a taxpayer disagrees with the IRS auditor's finding, the only resort is to use the courts. Special agents are assigned to an audit only when fraud might be involved (choice B). Self-employed persons have more flexibility in manipulating income and deductions than do employed taxpayers (choice C). The next step after an initial audit would be the Appeals Division within the IRS (choice E).
These pressure groups have less power than most elitist groups due to lack of resources and the lack of leadership that they have. They are more like a “passive” system, where is distributed fairly, and not against the current of the pressure group. Most of these groups do not represent things the government listen to, but there are a few exceptions, Liberty being one of them. Examples of these types of groups would be the Banking Lobby. All banking staff are free to join this, but as it’s an elitist group, power is mainly concentrated way up with the shareholders of the banks, who have the ultimate say in things to do with the group.
A culture with strong ethical standards and code of conduct stemming from top management is key to preventing fraud; it is also cost-efficient to implement as a control. d. Audit Committee While not as cost-efficient as the other controls listed, there should be an audit committee appointed by the Board. It would be in charge of all financial oversight within the organization. For smaller organizations, they can attempt to recruit professional accountants to volunteer their time for the organization; in exchange, these accountants would be increasing their own reputation as well. Larger organizations might consider appointing an audit firm to audit their statements.
First, payments on debt interest are tax deductible but payments on equity are not. Second, equity allows shareholders to share the company profits. With that, equity holders now also hold stake in AMSC and share control. Comparatively, debt financiers have little or no impact on control of the company; assuming payments are being made. Profits are also used to pay the debt, however, so how this weighs out as a disadvantage would clearly depends on how well or not
A. Why is corporate finance important to all managers? It is important because it provides skills managers need to identify and select the corporate strategies and individual projects that add value to its firm. Corporate Finance also forecast the funding requirements of the company and devise strategies for acquiring those funds. B.
The income statement is important because it will show whether the company’s revenue exceeded expenses for a specific period resulting in net income or the amount the company may have lost because the expenses exceeded the revenue. The retained earnings statement is equally important because it will indicate the exact reason why the company’s retained earnings increased or decreased over the reporting period. The balance sheet is important because it is the overview of the company’s financial condition at the time of the reporting period and the statement of cash flow’s is important because “Reporting the sources, uses, and change in cash is useful because investors,creditors, and others want to know what is happening to a company’s most liquid resource.” (Weygandt,
By implementing the new recommendations this will save time and money to Riordan’s employees when time to consolidate end of the month processes. Human Resources The Human Resources Information System is very important to companies and all of their employees. The Human Resources Information System has sensitive information such as social security numbers, addresses, and phone numbers of each employee. Not only do they have that sensitive information, they handle payroll for the whole business. Paid employees are happy employees.
This is especially true in developing nations since many of its activities are traded without the exchange of money. For example, household producing food from their own backyard for their own consumption does not require exchange of money. This type of activities will not be recorded in GDP even though economic activity has taken place. Thus the figures of GDP change for developing countries in Figure 2 may not reflect all the production that has taken place in the economy. Another problem with GDP as a mean of comparison is its nature of only accounting quantitatively.
In fact, like other professions, personal values come into play in the accounting decisions and judgments made by the decision makers, so full disclosure might mean different things to different people. Legal checklists have mandatory items, but the financial picture might still be vague or lack numbers to give an accurate financial representation of the company at any given time, as shown in the financial statements. For example, if it was totally “objective,” Enron’s accountant would not have been able to “cook” the books to make the company appear to be in a better financial position than it actually was. The accountant and other Enron professionals would not have ended up in court for fraud and the likes. Even though the accounting profession has guiding principles (GAAP), they are not absolute, but subject to human judgment and interpretation and, at times, the lack of compliance leads to fraud (e.g., Enron, WorldCom, and others).
That idea is false unfortunately fees and interest incur on these cards and people don’t think about those when they buy the items they want. People are too lax when it comes to credit card usage. As I said before people do not think about the fees or the interest that come with a credit card purchase. There are four main credit card companies Visa, Master card, Discover, and American express. Looking at the Visa website (www.visa.com) they have different types of cards with interest rates varying between 8.74% and 15.24% APR.