Essays on Accounting System

Two distinct set of financial reports are used in managing a company, one made by Financial Accountants and the other by Managerial Accountants. These reports are aimed at the company’s external stakeholders such as investors and creditors and are prepared for each quarter and at the end of the financial year and. The format and content of these reports are laid down in laws such as the SOX (Sarbanes- Oxley) Act and in accounting regulations such as the GAAP (Generally Accepted Accounting Principles) and the IFRS (International Financial Reporting Standards). Financial reports become comparable across companies. Managerial accounting ...

Introduction

Sierra Ltd. is an automotive parts’ manufacturer situated in Eastbourne, England. The company manufacturers several distinct products and follows the traditional cost management system. It uses machine hours as the basis of allocation of overheads to its product costs. This report provides an assessment of Sierra’s finance director’s proposal to adopt the Activity Based Costing system for allocating overhead costs more appropriately and to increase sales margins. The most important issues faced by Sierra Ltd. are the declining revenue and profits since the last five years, low projected net profits for 2016 and high product costs. Sierra ...

This model of change introduction and management is concerned with three different steps which the managers of an organization should take special care of. This model is based on three different stages namely unfreezing, changing and refreezing steps which are explained in detail for shifting from manual accounting activities to an automated or online accounting system . The first phase or stage in Lewin’s 3-Step Model concerns “unfreezing” of old way of thinking and behaviour about manual accounting system before any change is introduced. Unfreezing must be done because managers who have been using manual accounting system for more ...

Selected Scenario:

You are a newly hired junior account specialist in a highly respected public relations agency. Research Question: How will a new accounting system affect the reputation, organization, and operations of a public relations company? Single Source Louis , H., Sun, A. X., & Urcan, O. (2012). The value of cash holdings and accounting conservatism. Contemporary Accounting Research, 29(4), 1250-1271. The three authors have an extensive background in accounting. For one, they have a PhD in the same. Additionally, they have extensive experience in teaching accounting with each individual holding a position in their respective schools. Thus, the authors are qualified ...

Describe portfolio investments and FDI. How do they differ and why is it important to distinguish between them?

Foreign portfolio investments (FPI) and foreign direct investments (FDI) are two commonly used and at times easily confused phrases. Foreign portfolio investments refer to investments in financial assets in a foreign country. These financial instruments include instruments like stocks and bonds. Investors love to invest in such instruments in order to diversify and hedge their portfolios. For example, Brexit has caused European banks to shed their values significantly and some international fund managers have already started purchasing these banks to diversify their portfolio and take advantage of attractive stock valuations. On the other hand, foreign direct investment refers to ...

Part A - The impact of accounting on the IT Development 4

Part B – Question 1 - Introducing or Upgrading Computerized Accounting Systems 5 (a) Advantages and Disadvantages of using a Computer Accounting System 5

Advantages 5

Disadvantages 5 (b) Considerations when setting up a Computerized Accounting System 6

Completion of an Accounting Cycle 6

Recording all Transactions from Manual Trial Balance 7 Running a Trial or Testing Phase 7 Verification of the Computerized Accounting System 7 (c) Chart of Accounts and Coding Structure is Followed by Impetus Limited 8

Part B – Question 2 - Accounting Packages 8

(a) The Features of an Accounting Package 8

Security 8

Reporting 9 Interdepartmental Operations 10 (b) ‘Module’ in an Accounting Package and its Purpose 10 (c) ‘Integrated’, ‘Semi-Integrated’ and ‘Non-Integrated’ Modules ...

SUMMERY

INTRODUCTION The manufacturing sector, production means making a product either by using a machine or hand or both. It’s a component of goods producing industry. Unlike trading or service businesses that buy products and sell at a higher price to make the profit, manufacturing instead make products that they finally sell. Manufacturing companies that produce and sell goods needs an accounting system that does not solely look at the accounting aspect only but also sale and purchase of the goods. By this, the accounting system for the manufacturing industry is more complex than the service sector does not ...

RESEARCH REPORT

INTRODUCTION The French accounting had a long way of establishment and development. More so as France was a country with many colonies throughout the whole world. Despite the fact that the metropolis did not really want to develop thee colonies, as only their resources interested the French government, the French accounting system still had an immense influence on the development of the accounting systems in these countries.

French accounting found its origins under the reign of Louis XIV. The first mention and example of an accounting attempt was undertaken when the French wrote an official document named “Ordonnance”. The ...

Introduction

Managers are constantly making decisions that affect the operations and the bottom lines of the business. Such decisions could include the stocks in which to invest, when to introduce a new product into the market, how to optimize the profits of a firm, how to assign employees to various tasks, and when to venture into new markets. Managers require information to make correct and timely decisions. Managerial accounting and financial accounting are potent sources of the information that managers require when making decisions. Managerial accounting entails the identification, measurement, and communication of the economic information that is needed by ...

Posting in accounting is a process that involves the shifting of the balances in the general journal and those in the sub-ledgers into the general journal. Only the totals of the sub-ledger transferred to the general ledger and not the individual transactions. Posting can be done daily or monthly depending on the accounting manager’s decision (Bragg, 2013). The following are the steps involved in the posting in the accounting system. Identify and analyze transactions: Once the transaction is identified, it’s analyzed to see the accounts affected and the figures to be recorded (Franzel, 2009). The steps involved ...

Activity 1

The cash based and an accrual based accounting systems are the two methods of accounting, which businesses use to record their accounting transactions. The main distinction between these two methods of accounting is essentially the time at which expenses and revenues are recognized and recorded (McCorkle, Klose, & Klinefelter, 2008). Thus, a cash based accounting system is essentially an accounting technique under which the business record expenses when it pays out cash and records the income when it receives cash. Consequently, a cash based accounting system recognizes expenditures and income at the time when the businesses pay out or receive ...

The role of the auditor including legal and professional requirements, its importance, benefits and limitations

The Role of an Auditor An auditor is a professional who has an authority to independently examine, verify and confirm the accuracy as well as fairness of financial records of a business entity. The role of auditors can be classified as internal and external auditing activity. Internal auditors are those accounting experts who examine the accuracy and reliability of financial statements of their own employer. In contrast, external auditors are independent auditing/accounting entities who pass their professional judgment and form an opinion concerning the fairness of financial statements . Under the Companies Act, the role of an auditor is to ...

Financial Reporting Council is responsible for regular and high quality reporting to the investors as well as maintaining a regulatory environment. The aim of the council is to provide high quality financial reports which will suit the needs of the readers and answer all possible questions of the investors. The Committee is supported by three standard committees which include the Codes and Standards Committee, the Executive Committee and the Conduct Committee. These combine and work together for the achievement of the goal of the Financial Reporting Council which aims to maintain an environment where high quality reporting is carried ...

Introduction

The origins of various components of bookkeeping are aspects that have evaded scholars and economists overtime. It is not very clear on when the issue of cost accounting started to be used by various business people. The literature on the issue suggests that attempts to manufacture accounts can be traced to as early as the 16th century. As time went on, the accounting practices became more complex. This paper seeks to trace the development of the concept of cost accounting by first having a clear conceptualization of the field and then looking at the advances that have been made ...

Powers Report: The Enron scandal

The Enron scandal that occurred in 2001 has been cited as the biggest audit failure. The scandal would later lead to the bankruptcy and collapse of Enron Corporation. Enron was an American energy company that was based in Houston. It was the largest energy company in the United States. The scandal also led to the dissolution of Arthur Andersen, an accounting firm that was one among the largest five accounting firms in the world. The investigation began when the share price of the company declined sharply from $ 90.75 in the mid of 2000 to less than $1 in 2001 ( ...

Managerial Accountant

With regards to my request for a Managerial Accountant, I would like to explain why I sincerely believe that there is a need to hire another one, who will focus on the internal accounting aspects of our company. First of all, allow me to enlighten you on the objectives and characteristics of an internal accounting system. “The main objective of an internal managerial accounting system is to provide information to managers so they can make sound decisions”. The internal managerial accounting system plays a significant role in the planning and budgeting functions because there is a factual basis for ...

Introduction

Corporate governance can be defined as a system by the corporations are controlled, directed and administered. The structure of governance is used to specify the distribution of responsibilities and rights among the different participants in a company such as managers, board of directors, creditors, regulators, auditors, shareholders and other stakeholders, etc. It also specifies the procedures and rules for the major decision making in corporate affairs. Corporate governance tends to provide a structure by which organizations can set their objectives and pursue those objectives along with the reflection of the context of regulatory, social and market environment (Simanovsky, 2010, pp. ...

Accounting Practices in third world countries

The developing or less developed countries are referred to third world countries that have great diversity among them. In this category, some poorest countries of the world (Bangladesh, Ethiopia and Grenada) and some are not-so-poor countries (Qata, Saudi Arabia) are included (Guan and Pourjalali, 2010). For industrialization, some are very poorly industrialized while others have moved to industrialization. So, the culture and political environment of these countries are different to each other that influence the accounting practices of these countries and affect the accounting of companies or branch operations which are US based.

Financial accounting in third world ...

Changing AIS

Implementing a new enterprise wide change in an organization is a daunting task for any organization, and if it is not properly handled, the process can fail and lead to unprecedented losses for the organization in question. Accounting Information Systems are important in any modern business organization. Businesses cannot continue using the now outdated accounting techniques in this era of advanced technology. However, a number of organizations have encountered problems trying to implement accounting information systems for the first time or even when changing from one to the next one. Such was the case with an Australian company X-Ray Australia (Not real ...

Winford Plc is a company that has been awarded a contract by Westriver Borough of operations of the local swimming pool. In order to manage the sales and revenue generated by the services offered, an accounting system, has been developed. The main components of the new system in relation to sales revenue and tickets from vending machines will include principal documentation, the processes involved and the records to be kept (Champlain p.45).

The Principal documentation of the new system will be made up of two parts. The first part is the user documentation. The main purpose of the user documentation is ...

Winford Plc is a company that has been awarded a contract by Westriver Borough of operations of the local swimming pool. In order to manage the sales and revenue generated by the services offered, an accounting system, has been developed. The main components of the new system in relation to sales revenue and tickets from vending machines will include principal documentation, the processes involved and the records to be kept.

The Principal documentation of the new system will be made up of two parts. The first part is the user documentation. The main purpose of the user documentation is to assist ...

MEMORANDUM

Re:

Introduction

I have keenly assessed the memo recounting Sylvia Martinez’s current business activities. Sylvia operates a chain of dry cleaning stores within the Houston metro area. She is currently planning to do major renovations to two out of her five locations. Sylvia married Polino who is later employed by the dry cleaning business and pays the cost of Polino’s polo playing. She uses Polino’s polo playing as an opportunity to advertise her dry cleaning business by tagging the business logo on Polino’s polo uniforms and sandles. Sylvia also sells cleaning products alongside dry cleaning services. Sylvia ...

Discussion Board Post

Discussion Board Post Cost accounting system is a structure used by companies to approximate the cost of their products to allow profitability analysis, cost control and inventory valuation. There are two major cost accounting systems namely; job costing and process costing. Job costing system gathers all manufacturing costs discretely for each job. Process costing gathers all manufacturing costs discretely for each process. Companies can decide to use both systems or use one of them. Companies are most likely to use the job costing system when company’s products are unique and when products are made based on specific ...

1. Introduction The Enron collapse, occurred in October 2001, consequently caused the bankruptcy of the whole Enron Corporation, the world’s leading energy, commodities and services company, as well as the dissolution of Arthur Andersen, which was one of the top five largest audit and accountancy firms in the world. Noteworthy it was not only the largest bankruptcy proceeding in American history at that time, but also the most serious audit failure, so that one says, “Enron is fraud and fraud is Enron”. The rise of Enron was almost as fast as its failure. Actually, it was an ...

Abstract

The paper gives an account of the importance of accounting. It provides information about the increasing importance of accounting in the recent years and the entities that pay attention to the information provided by the accounting system. The paper also describes about how each party makes use of accounting and its role in the process of decision-making. It also explains the need for recording and analyzing the transactions through the accounting system. Most importantly, the paper asserts the importance of accounting in assessing the performance of firms. The paper also provides a great deal of information about the role of ...

[Professor]

Introduction This paper reviews different literature works to evaluate the real meaning of accounting. This paper defines accounting from scratch in order to give comprehensive information for those who do not even know about this field. Further, this paper describes accounting, its reporting procedure, financial statements and their purpose. In addition to that, this paper defines various types of accounting systems that are used around the world by different types of organizations.

Analysis

Accounting is considered as the language of business, which tells the financial position an organization. It is a systematic way to record, summarize and analyze the ...

Business Plan for United Arab Emirates Food Truck

Business Controls

We will be using an application based accounting system that is versatile on desktops, tablets and mobile devices. The square reader with stand will be at the food truck for sales, this application allows us to add inventory and customize price all while tracking sales and receipts. The application also will store clients for loyal customer tracking.

Quality Control

We will be monitoring online social media, utilizing hashtags and other customer feedback mediums to engage in what our customers are saying and to educate the public on our whereabouts and menu. Upon hearing what the feedback is, we will:

Try to show up at requested locations whenever possible

...

An Accounting Information System (AIS) refers to the structure used by a business to collect, process, manage, store, retrieve, and report business related data. Business analysts, accountants, managers, consultants, auditors, tax agencies, and chief financial officers use such information in making crucial business decisions (Gelinas, Dull, and Wheeler, 2012). Professional accountants work with AIS in deriving financial data with high levels of accuracy in record keeping, and avail this information to decision makers (Hall, 2013). AIS also ensure that the data used by accountants remain secure and intact and that it is only availed to legitimate users. AIS are ...

Introduction

SAP or Systems Applications And Products (German - Systeme, Anwendungen, Produkte) is software developed by a company with the same name started by former employees of IBM in Mannheim, Germany. The company, originally called Systems Analysis Program Development (SAPD) and later renamed as SAP, was founded in 1972. According to Dietmar Hopp one of the five co-founders of the software, they had worked together in IBM at Mannheim and created an atmosphere of team work. The concept of integrated information system was adopted and it evolved into the software called SAP. — the software facilitates management of all aspects of a business ...

Executive Summary

Achievers Company is an incorporated company certified by the national project and management contractors’ board to provide project management consultancy services in local and international markets. Our mission is to provide unprecedented services to our clients by assessing the shortest and cost-effective time to complete the project. Our vision is to be the world’s leading project managers and consultant in Telecommunication industry.

Company Description

Our core objective is to assist private companies and parastatals to upgrade their telecommunications systems with intent to enhance efficiency and effectiveness in data and communication system within e and beyond the company. We are credited ...

Management Accounting Literature Review

The business environment in Malaysia has experienced several changes over the recent years. These changes have been brought about by globalization that has introduced new technologies in the country. The technologies have opened the business environment in Malaysia to new challenges and competitive forces. The central Government economic policy has helped business people to mitigate challenges associated with management accounting. The policy is in line with the country’s vision 2020, which aims at reforming the management of its resources, and it has contributed greatly to the manufacturing industry in the country. The manufacturing industry is a key contributor to ...

Executive summary

This paper discusses about on time delivery of projects in IT organization. The issue of delay in IT projects is discussed in the start of this paper in which the issue is elaborated comprehensively. The same section includes the root-cause analysis of the issue in which several root causes have been identified and briefly discussed. The last section of the paper includes recommendations. In this section several recommendations have been elaborated to address the root causes mentioned in the previous section. Few other recommendations that may address the problem are also given in order to ensure on time delivery ...

Section 1:

Cash Flow Statement *Refer to excel sheet for all the calculations **We have started Cash Flow with operating income as even with net income we had to add back items to reach at operating income only.

Importance of Cash Flow Statement

Unlike other financial statements, Cash Flow Statement details the position of cash in the company. While both the income statement and Balance Sheet are made on accrual basis, Cash Flow is made on cash basis of accounting. In this way, Cash Flow Statement provides a detailed and an in-depth overview of cash inflows and outflows from the company. Below discussed is some ...

Using the following imaginary company data the differing effects using LIFO vis-à-vis FIFO will be shown and explained. Assume a physical count determined 20 units in ending inventory. The first-in-first-out (FIFO) method assumes that the first units purchased are the first unit sold and to be expensed to cost of goods sold (COGS); therefore, the units remaining in ending inventory (EI) are comprised of the latest units to be purchased. The last-in-first-out (LIFO) method assumes the latest units purchased are the first units to be sold and to be expensed to COGS; therefore, the units remaining in EI ...

Introduction

Every logistics company deals with different customers and companies. That can cause problems especially when the company department does not have enough employees who can handle the big amount of documents from different customers. This research the causes of documentation delay in freight forwarder department in Al Madina logistics - As a manager/an employee at Al Madina , how do you feel the a documentation delay in the organization affects the output? The managers felt that delays of documentation affect the customer in negative way since they are not satisfied with the industry. As will it affect back office operations ...

(a)Discuss the need for a cash flow statement such as that given for JLJPlc; Cash flow statement analysis is helpful to management in the generation and utilization of cash in the most efficient way. Efficient utilization of cash helps management in its objective of wealth maximisation. The cash flow statement helps in identifying the strength of cash generation in the various activities such as operations, financing, and investing. It helps trace the source of cash received and how it is disbursed. For To be a healthy firm, cash should come from operations. The cash flow statement is also an indicator ...

Introduction

Cost is the amount of money an organisation spends in producing a unit of the product. There are various types of costs incurred in producing a unit of the final product. Some of these costs are fixed and some are variable. Some costs are distributed among various products being produced in an organisation. Accounting for all these costs to derive at final value of a product is known as cost accounting. The paper aims at contrasting the two main types of cost accounting systems, which are process cost accounting and activity based accounting system. The paper is divided into three sections. ...

Accounting

Accounting Description: There are risks of unauthorized access to either physical inventory sites or the online inventory system. Specifically, for on-site inventory access, only authorized employees can enter the warehouse with their access cards. For online inventory access, only and employees can login and special passwords should be required. The level of confirmation required should vary according to the importance of the inventory data. This will help different people access different inventory data instead of giving everybody access to data inventory. Test Procedures: First, the auditors can ask for a list of the employees who has the access ...

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Enron was believed to be one of the leading, innovative corporations of the world. The company that received the “America’s Most Innovative Company” award for six years in a row by Fortune magazine saw a sudden fall in 2001 and shocked the entire industry. The fall of the giant corporation did not only affect the industry but also shattered the dreams of the employees and stockholders of the company who had been bedazzled by the great profits. The factors behind the fall of this huge corporations were never identified before ...

Al Madina Logistics Services is an Oman based private company that leads the supply chain sector. Some of the services of supply-chain services include transportation, container yard, professional logistics consultancy, warehousing, freight forwarding, and transportation. The warehouse and distribution centre .consists of ultra modern facilities with strategic locations in Oman. The Warehouse has storage facilities and handling systems. The value-added services provided at ALMS include sorting, inkjet coding, bar coding, quarantine management, and damage product destruction.

Manager/ Employee

1. Documentation delays Some of the challenges that AlMadina faces in Oman include slow processes, ineffective sharing of customer data, heavy paperwork, ...

Introduction

A recent research on management accounting culture change established how accounting practices are woven into the cultural fabric of any organization. The study adopted and explored theories of a series of cultural change interventions related to management accounting. The traditional accounting methods involved process costing, standard costing and job-order costing. The evolution of business environment was considered efficient because of its role in the accounting techniques. The new methods labeled as advanced management techniques were considered to provide tools of achieving a competitive edge. They include Kaizen costing, activity-based costing, value-added accounting, cost of quality, strategic management accounting and back-flush costing. ...

Analysis: Next Plc

Assignment 1: Executive Summary: The report makes a recommendation about the balanced scorecard of Next Plc. It makes this recommendation on the basis of mission, vision and strategic objectives of the company. The strategy map links the perspectives of the balanced scorecard with the strategic objectives of the company. It is by adopting the perspectives mentioned in the balanced scorecard, the company can achieve its strategic objectives. The limitations of the balanced scorecard as a strategic management tool have also been identified and are largely dependent on an effective accounting system. Balance scorecard tends to put the interest ...

IS THE GDP OVERRATED?

Introduction Gross Domestic Product (the GDP) is accepted as one of the main economic indicators. By definition, the GDP is the sum of the values of all the goods and services produced in specific time period in a country by using the current prices. We consider that high amount of production allows us to build a well-designed civilization. If a country can produce more than the needs of the citizens and export the excess production to the other countries, then this country can reach the desired goals. In another word, the GDP is generally accepted as an indicator of well-being. Most ...

Introduction

An accounting framework essentially influences the way business entities delineates success. Traditional accounting predominantly concentrates on increasing the shareholder value while also influencing the bottom lines of the business in terms of its finances. However, an growing number of corporations now-a-days, are primarily interested in either the so called “double” or “triple” bottom line accounting. Their focus is not just on measuring the impact their business practices have on the financial bottom line, but also upon the impact their business practices have on their personnel, the societies in which they operate, as well as the environment surrounding them. ...

1. Balanced Scorecard Approach and its Perspectives Balanced Scorecard (BSC) is a radical way of appraising organizational performance and the concept was officially unveiled in the year 1992 by Robert Kaplan and David Norton. BSC, born in the Harvard Business School, was a radical concept at its time. Prior to the origination of BSC, only financial measures were used for organizational performance evaluation. However, BSC was the first concept ever which went beyond pure financial measures for evaluating an organization’s performance. This concept was the first to use a holistic approach toward performance evaluation of organizations as also using indictors ...

MANAGEMENT ACCOUNTING QUESTIONS

Question 1 The entity charged with the design and development of the activity based costing system is the company’s a person who possess a host of leadership abilities and prior knowledge of ABC technology most probably a person from the company’s accounting department . This individual would be charged with the role of coming up with the most effective costing system that can significantly boost the company’s drive towards the achievement of its objectives. The person selected should however have the maximum to have the support of the top managers, line managers and the entire staff of the company. ...

Annotated bibliography

Reckers, P. (2002). Advances in Accounting. Burlington: Elsevier.

Trust in both the accountant and the platform he/she is using, has to be maintained for an accounting practice to be considered credible. (Reckers, 2002 p. 122) A good and credible accounting process has to have features such as; Ability to produce accounts at a short notice; should provide audit trail; Compatibility with external. Programmes; able to detect error; should enable internal controls to be integrated into it (Reckers, 2002 p. 122) Easttom, C., & Taylor, J. (2011). Computer crime, investigation, and the law. Boston, MA: This book elaborates on ...

Being the largest Middle East economies, Egypt is starting its changes in the market economy. It has experienced significant changes in its accounting system in the last two decades. The evolution of accounting in Egypt demonstrates its capability to adapt in response to changing conditions. Meanwhile, various cultural aspects have greatly influenced accounting practices in Egypt. Although Egypt is leading Middle East economies, it has experienced cultural mistakes and challenges in transforming its accounting systems and standards. Thus, this paper will discuss cultural challenges and mistakes that Egypt has encountered in the process of changing its accounting systems and ...

REPORT

Executive summary The best management practices are applied with an intention of improving the overall performance of any active institution. In this perspective, an organization strives to achieve its objectives by defining its best practices. The career path of Sugarsweet provides a more dynamic overview of modern management as well as its success and limitations. Further, it illustrates the organization’s ability to reflect and gain strength and effective financial management. Ideally, Sugarsweet case illustrates a clear need to introspect and create an insight into management dynamics.

This focus also explains the role of the management theories in today’s organizational development.

The training approaches are evaluated on the basis of a management system in order ...

CHAPTER ONE

1.0 Introduction This chapter provides the background to the study. It details the problem statement, research objectives and research questions. 1.1: Background of the Study As businesses grow out of the start-up period and expand their capital and operation, size and product or service offerings, their accounting based informational needs some changes (Bodnar, 2010). Most small business start-ups begin with an off-the-rack accounting based package for instance Peachtree or QuickBooks and run the basic accounting reports from them. However, there comes a time when the environment, government, accounting rules and standard and other technological based factors force ...

Briefly explain accrual basis of account. Also what is the reason why accrual basis of accounting is not desirable for most organizations? An accounting system that recognizes the revenues as they are earned and records the expenses as they are incurred, is known as the accrual accounting system. Totals of expenses and revenues are included in the financial statements, whether or not the cash against these transactions is paid or received in that period. The date of receipt or payment of cash does not have any effect on the books except to record the payment or receipt of ...

Activity-based costing focuses on the activities on specific items and not the products of a given firm. In addition, activity-based costing effectively identifies specific activities within a firm whilst assigning the associated costs on the basis of the levels of consumption. Notably, activity-based costing is different from conventional costing on the basis that the former categorizes overheads as direct costs. Theoretically, Competition Bikers merger should not adopt activity based costing as a replacement of the conventional accounting system but as a complimentary or additional accounting system. This will help to transform the company’s accounting process into an authentic state. There may ...

Auditing is important in all organizations in the world since it enables the preparers of financial statements to provide a true and fair view of these documents. In addition, auditing enhances transparency in reporting. It also ensures that there is little or no manipulation of accounts in the organization (Arens 2). One of the important aspects in auditing is the audit risk model. This model explains the various risks that are associated with auditing. The model describes risk as the probability that there will be inappropriate use of auditor’s independence in the provision of opinions regarding financial statements. ...

Abstract

Historical cost accounting refers to the accounting method in which only the original costs of assets, liabilities, revenues or expenses are recognised. This means the method is silent as to the effects of depreciation, inflation, time value of money among other things. Much of the arguments for and against the historical cost accounting method can be divided into two, academic and practical reasons. The academic arguments resonate around issues of integrity and rationality while practical argument consider the fact that decision making uses accounting information and the overall need for accuracy in decision making. Its pros include the fact ...

Activity-based costing focuses on the activities on specific items and not the products of a given firm. In addition, activity-based costing effectively identifies specific activities within a firm whilst assigning the associated costs on the basis of the levels of consumption. Notably, activity-based costing is different from conventional costing on the basis that the former categorizes overheads as direct costs. Theoretically, Competition Bikers merger should not adopt activity based costing as a replacement of the conventional accounting system but as a complimentary or additional accounting system. This will help to transform the company’s accounting process into an authentic state. There may ...

- In your opinion, what is the single most important ingredient for a successful energy management program? In one’s opinion, the single most important ingredient for a successful energy management program is the commitment put upon it by the organization. This means that all levels of the organization are aware of the program, its goals and the specific strategies that must be implemented to achieve the desired energy consumption level. Even if all the processes and technologies needed are in place but if there is no commitment from the people of the organization, the program will not be successful. Commitment ...

The cost accounting system that an organization chooses to use is determined by many factors. Key among the determining factors is the business the organization carries out. For instance, an organization offering services and having distinct jobs for its workforce will elect to go by the job order costing system of accounting (Shim & Siegel, 2009). On the other hand, an organization dealing in the production of goods, especially identical units, will opt to use the process costing system of accounting. In simple terms, the products of the organization are the determinants of the system since costs relate directly to ...

1 Introduction 1.1 Purpose The aim of the implementation plan is to guide the team in the implementation of the new. Implementation plan provides a systematic approach to implementation of a new project. The system to be implanted is a new new accounting system in a growing manufacturing company with production facilities domestically and internationally. 1.2 System Overview The new accounting system is an application system that will enable the company to manage the financial record effectively. The system is supposed to capture the accounting information of the company and help in processing transactions. 1.2.1 System Description ...

The Westmount Retirement Residence is a care center for the elderly located in Ontario. Since its inception in 1997, the facility has offered various services to its clients at a profit. In the recent days however, the company has had reduced profitability. This has caught the attention of the administrator, prompting her to come up with a way of increasing profits.

Despite offering high quality services, competition has increased and this has negatively affected the company. The pricing policy has been found to be flawed and ineffective. For this reason, a new pricing model which will ensure profitability is being sought. This ...

Costs influence the pricing decisions of any company as it aims to make a profit out of its production activities. The healthcare industry is volatile and competitive and the pricing set in the market will not be suitable for a company that does not strategically control its costs. The management of an outpatient health clinic felt the need to shift from a traditional accounting system to a modern cost accounting system known as activity based costing (ABC).

ABC in an Out-Patient Health Clinic

In traditional system of accounting, the good or service would be assigned direct and indirect costs. The fixed costs would be estimated for the different products ...