Research approach PART 2 INFORMATION GATHERING AND BUSINESS AND ACCOUNTING TECHNIQUES 1. Sources of information used in the research report 2. Description of methods applied in collecting information 3. Limitations of my information gathering methods 4. Ethical issues encountered during the information gathering and how they were resolved 5.
(AC1.3) Evaluate the factors which influence the nature and structure of accounting systems of Tesco Plc. (Task 1 covers assessment criteria AC1.1, AC1.2 & AC1.3 under LO1)4 Task 2 (LO2: Be able to analyse the management control systems of a business) Scenario: According to the
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.
An analysis of the Accounting Systems of Cookridge Carpets Limited with the weaknesses, possibility of fraud and recommendations for improvement | LIST OF CONTENTS PAGE 1.0 Terms of Reference 3 2.0 Executive Summary 4 3.0 Methodology 5 4.0 Findings 6 4.1 Analysis of the Current Accounting System 6 4.2 Effectiveness of its internal control 6 4.3 Potential Existence of Fraud 8 4.4 Working Practices 8 4.5 Staff Training 8 5.0 Conclusions and Recommendations for Improvements 9 5.1 Effectiveness of internal controls 9 5.2 Potential Existence of Fraud 12 5.3 Training needs to support staff 12 6.0 Appendices 15-26 1. TERMS OF REFERENCE This report has been prepared to cover the requirements of AAT Learning and Assessment Area ‘Internal control and accounting systems’. The Senior Accounts Clerk at Cookridge Carpets has been asked to carry out a review of its accounting systems, and produce a business report outlining identified weaknesses, making recommended improvements that are felt necessary. 2. EXECUTIVE SUMMARY: This report is to review Cookridge Carpets’ Accounting systems and procedures and to identify and recommend improvements particularly in the following areas: * The suitability of current reports meeting its needs; * The effectiveness of its internal controls; * The potential existence of fraud with the organization; * The reliability, speed and cost effectiveness of its working practices; * The use of training to support its staff.
There are several issues to consider when comparing the financial ratios of a public company to the industry averages. It is important to allow for any material differences in accounting policies between the specific company and the industry norms. It is also important to determine whether ratios were calculated before or after adjustments were made to the balance sheet or income statement. (Atrill & McLaney, 1997) It is also extremely important that one make sure that the financial data was developed using comparable accounting methods, classification procedures, and valuation bases. I have chosen to analyze Branch Banking & Trusts financial ratios and compare them to industry averages.
This source is relative to my auditing collusion research because it discusses audits that are failing due to collusion and many other facets of fraud in the work place. Chauhan, A., & Kenkre, M. (2011). Fraud Investigations - Employee Fraud. Credit Control, 32(3/4), 8-17. Retrieved from
a.|auditing existing data| b.|collecting and recording data| c.|providing information to users| d.|analyzing and managing data| ANS: A PTS: 1 DIF: Moderate OBJ: 1-1 NAT: AACSB Reflective 3. In an accounting information system, the inputs are usually a.|financial statements.| b.|analyzing data.| c.|performance reports.| d.|economic events.| ANS: D PTS: 1 DIF: Easy OBJ: 1-1 NAT: AACSB Reflective 4. _______________ is devoted to providing information for external users. a.|Management accounting| b.|Financial accounting| c.|Internal accounting| d.|Cost accounting| ANS: B PTS: 1 DIF: Easy OBJ: 1-1 NAT: AACSB Communication 5. 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.
Second, the auditor should try to understand the entity being reviewed and its atmosphere. This includes the use of internal controls to identify fraud or errors that may attribute to a misstatement in the financial statements. The
("The Principles of Commercial Accounting and Fund Accounting", 2011). Accrual vs. Cash Basis Accounting According to the readings, accrual base accounting is defined as in which businesses record, in the periods in which the actions occur, transactions that alter a company's financial statements, even if cash was not traded. In other words, it means that recorded or un-recorded, all dealings are taken and estimated into the overall balance. Cash Basis Accounting, in which an establishment accounts revenue only when it collects cash and an expense only when it pays out cash. This method means that accountants, only takes accountability of the physical cash that is exchanged.
1 INTRODUCTION TO MANAGERIAL ACCOUNTING DISCUSSION QUESTIONS 1. Managerial accounting is the provision of accounting information for internal users in a firm. 2. The three broad objectives of managerial accounting are to provide information for planning, controlling, and decision making. 3.