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.
This week we learned that companies are required to prepare a statement of cash flows because it gives a more accurate snapshot of the actual cash flow of a company. Financial statements give an overall picture of how much revenue a company is reporting, but high revenue does not guarantee that the company has the ability to pay its bills. The statement of cash flows is a tool designed to help external users make sound economic decisions about the company. The statement of cash flows is divided into three sections: 1) operating activities, 2) investing activities, and financing activities. The operating activities section analyzes the company's flow of cash as it relates to a net loss or net income.
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).
The year-end bank reconciliations are usually extensive audit and using analytical procedures are test for reasonableness of cash balances. Auditor will compare ending balances on bank reconciliation, deposits, any outstanding checks, and other reconciliation items. In order to audit any cash in the bank, the
The PCAOB has issued a report describing the kinds of audit deficiencies as identified on audits affected by the financial crisis. The PCAOB also issued several practice alerts on various auditing risks during the course of the crisis. Besides, the PCAOB is focused on taking appropriate steps in its inspection and enforcement programs in order to improve audit quality and enhance protection of the investing public. The PCAOB is also using information gained in inspections and investigations, along with information received from investors, audit committee members, auditors and others, to improve auditing and related professional practice standards to improve the quality of audits during periods of economic
Why not use the Trial Balance to report financial information internally and externally? What limitations does it have over formal financial statements? What is a fiscal year? What are the steps in completing the accounting cycle? Discuss the relationship between the amounts on the Adjusted Trial Balance for an account and its ledger?
The cost minimisation strategy employed by British airways during the recession proved to be an influential choice. It forced BA to be sensitive and cautious about cost and the passengers' volume has been cut down in terms of business and tour travellers. The industry competition is getting fiercer as by the joining of the lower cost airliners which indicates BA has to master the value creation process, or the value chain, with business perspective and cautious. In addition, the cares on the stakeholders in each stage of the business should be paid attention to, or it may leads to the negative impact to BA such as the staff strike took place in January 2007, which gives BA's brand image a big shock. These cuts the company has to make resulted in employee dissatisfaction.
The Sarbanes-Oxley Act has increased the s increased the reliability and dependability of financial statements. As a result of this, companies’ internal controls improved greatly. Under the Sarbanes-Oxley Act, the revised auditing requirements for internal controls mandates that an organizations internal controls procedures must be tested by auditors and that the test findings should be reported in the organization’s annual audit report. An assessment of whether the internal controls supply both a system of maintaining records that concretely and fairly project the company’s transactions, and acceptable assertion that transactions are recorded in conformity with the arrangement of GAAP financial statements are to be included in this
Because the company must produce all financial information to the SEC many businesses find it to be very stressful and time consuming which takes time and money away from a company that is thriving like Kudler Fine Foods. Legal liability is important when conducting an IPO and those offering the shares can be personally sued. The expenses continue after the company goes public with the SEC reporting requirements. Kathy Kudler will not only lose control of some of the decision making for Kudler Fine Foods with an IPO, but she will also lose some of the profits, as a portion will go to the
It has a part in the efforts which are increasing the controls on Wall Street designed to protect American consumers. TexPIRG is involved in requiring banks and other businesses to protect our personal information in order to protect us from identity theft. Certain businesses like pawn shops, pay day loan companies, and rent-to-own stores prey on working families, low income people and the military when they are cash poor. As a result, they pay high prices for poor quality goods with high interest or user fees in the form of the difference between what is paid monthly for the furniture, for example, and the actual purchase price. Pay day loan companies and pawn shops skirt limits on interest rates by claiming other costs, so people who use these companies lose a lot of the money that was in short supply already.