This would be important for accounts receivable - money that is owed by a customer for products/services. Representing a company in small claims court requires one to be familiar with the law and how it relates to accounting practices. In the Mack v. Edenwold Fertilizer Services Ltd. case, if Mack had a knowledgeable accountant that was familiar with the law, he may have been advised not to sue as the illegality of the situation would have resulted in a loss. In turn, this advise would have saved Mack both time and
I believe that pairing these two professionals is important both for resolving the current potential crisis and as insurance toward our future public license to operate. 2. Question: Having gathered the necessary data, you have found that both solutions require the organization to pay a fine. How can you ensure that your decision will not have a ripple effect on the followers (employees) in the organization? With the knowledge that we are liable to pay a fine, we will find a way to allocate resources that will keep our employees from having to shoulder the brunt of the financial backlash.
Question 1: Auditors should not insist that their clients accept all proposed audit adjustments even though those that have an immaterial effect on the financial report. The auditors should be suspicious of any rejection of the clients and have to investigate deeper into the suspicious accounts. Moreover, auditors should not be careless even though they have close relationships with the clients and fear that they would lose potential auditing fees. Question 2: Materiality is a concept or convention within auditing and accounting relating to the importance/significance of an amount, transaction, or discrepancy. The objective of an audit of financial statements is to enable the auditor to express an opinion whether the financial statements are prepared, in all material respects, in conformity with an identified financial reporting framework of Generally Accepted Accounting Principles.
As Sainsbury's have a hierarchical structure they are most likely to lose a lot of money because for the marketing and research and development departments to carry out their functions they would need funding from the finance department. For this information to get to the finance department a lot of time would have been wasted and also for the finance department to reply to them, all this would cost them a lot of money. Advantages of Sainsbury's is that the power they have would be successful for the business as when work is being done the communication of the workers together when given commands from the manager and having to work better for the manager to impress them in order for more work to be done and at a more well-organized rate then if there was no pressure from the manager. Disadvantages would be that the workers would start to get stressed from having to complete the workload at too fast a pace for them to work at all times that they will start to work less and dislike there job and some days may not want to work as they are stressed to do work which is too much for them to cope as they are trying too hard to impress, this could lead to employees wanting to quit their job. Advantages are that when having to complete work set out by the manager to the employees it can be done efficiently so that the manager will be able to assess the employee and they could get a promotion to a higher part of their job.
- After referring to the ACA Code of Ethics (ACA, 2005) I found that under section B. Confidentiality, privileged communication and privacy, B.2. Exceptions B.2.a. Danger and Legal Requirements. The general requirement that counselors keep information confidential does not apply when disclosure is required to protect clients or identified others from serious and foreseeable harm or when legal requirements demand that confidential information must be revealed.
It analyses the entity’s competitive situation by assessing its strengths, weaknesses, environmental opportunities and threats. Strengths HIH had the support of the public and its personnel and this could be an asset to management because they would have space for maximising potential of the company. HIH also creatively use re-insurance to free up funds otherwise stuck prudential margins and allow more funds for expanding investments. Weaknesses HIH’s main weakness is its lack of corporate governance, especially the lack of process and risk management within the company. A lack of process meant that there were no limits to authority and rules were not followed.
Mary should have stated that time is of the essence in her contract with SHAKE so that her intention is clearly defined. This is a breach of warranty. The commercial project between The Cookie Monster and Mary was not known by SHAKE, therefore it is not in contemplation by SHAKE. With reference to Hadley v Baxendale(1854) case, the court held that Baxendale was not liable for the loss of profit. Baron Alderson held that : ‘Where two parties have made a contract which one of them has broken, the damages which the other party ought to receive in respect of such breach of contract should be such as
GENERALLY ACCEPTED ACCOUNTING PRINCIPLES (G.A.A.P) GAAP is an international convention of good accounting practices. It is based on the following core principles. In certain instances particular types of accountants that deviate from these principles can be held liable. The Business Entity Concept:- The business entity concept provides that the accounting for a business or organization be kept separate from the personal affairs of its owner, or from any other business or organization. This means that the owner of a business should not place any personal assets on the business balance sheet.
Assessment activity 1: Review organisational processes, procedures and requirements for undertaking risk management 1. Create your own definitions for the following terms: a) Risk: A probability or threat of damage, injury, liability, loss, or any other negative occurrence that is caused by external or internal vulnerabilities, and that may be avoided through preemptive action. b) Risk management: The identification, analysis, assessment, control, and avoidance, minimization, or elimination of unacceptable risks. c) Risk appetite: The amount a business is willing to place at risk in the pursuit of its objectives d) Risk capacity: The amount a business is capable of loosing before it endangers its own sustainability 2. Comment on the following saying in relation to the risk management policies and practices of an organisation: “ Organisations that fail to plan, plan to fail” If an organization does not have a risk plan is likely that any risk occurring with negative consequences occur organization.
However, the doctrine of VL is a form of strict liability and has the repercussions of placing undue burdens on businesses with negative economic impacts while distorting the ideas of corrective justice. Secondly, it gives effect to the principle of loss distribution so that claimant is able to obtain compensation from a party who has the funds to actually pay. The rationale is that since the employers benefit from the work of their employees and ought to be liable for any damage the employee may have caused in his performance. This is linked to the profits target set and it would be unfair if employees were sued for negligence which mainly caused by the cost-cutting practice of the employer.Thirdly, this leads to theories