Working in accounting department means that all accountants are fully responsible for each work they produce and the report they give to their managers that shows the financial statement for each period. Accountants should follow the law and the basics of accounting ethics and their function, to avoid legal and financial trouble and be legally defensible in case the auditor comes to check the accounts that had been entered in the system and check if the accountant are following the ethics procedures and working legally. If the business didn’t hire a professional accountant who collect and presents data in the clearest and most accurate way possible to show it to the government if needed. “My accounts, which I can swear to have kept faithfully, I have, indeed, never got audited, still less accepted, still less paid and settled” (Previts, 1976). These quote show that accountants are honest in following their morals and
Forensic Accounting: Dr. Larry Crumbly (2017) sees forensic accounting as a specialty area of accounting that describes engagements that result from actual or anticipated disputes or litigations. In general terms, it is a practice that invites use of accounting skills to investigate fraud and malpractices in the corporate space and bureaucracies, and analyze information drawn from such investigations for the purposes of use in legal proceedings. According to the Forensic CPA Society, there are numerous types of forensic accounting engagements especially when it comes to civil litigations and disputes. These engagements include: Calculating and quantifying losses and economic damages, whether suffered as a consequence of extortion and/or breach
Thus, in the final analysis, the usefulness of ratio is wholly dependent on their intelligent and skilful interpretation. Advantages or Uses of ratio analysis: 1) It helps in budgetary control. 2) It facilitates the inter-firm and intra-firm comparison. 3) It helps in standard costing. 4) It is helpful to the management for decision making.
1.0 Introduction What is accounting and why it is important to companies? Accounting is the procedure of recording, analyzing, and presenting the monetary transactions in various reports. It is a profession that consists of individuals with a formal education to carry out various work tasks, such as calculating the net profit and net assets of the company (Averkamp, 2003). Accounting is often applied by most of the businesses as essential information on the financial performances is being provided to keep the business healthy, and it also provides to groups both within and outside the organization. All the businesses have their own creative and unique type of accounting as every firm has distinct operations.
Introduction Accounting is a system, and its practice is a workmanship or art created to individuals screen their monetary exchanges. Accounting gives individuals a money related photo of their undertaking. Its unique - and continuing – crucial reason for existing is to give data about the financial dealings of a man or association. At first, just the individual or association required the data. The legislature required the data.
Responsibility for Poor Accounting: Are Accountants Always To Blame? Accounting is the process of “analyzing, recording and summarizing” financial information into useful and reliable financial statements that would serve as an overview of the business’ financial performance to both internal and external users. Accountants are the people who deal with this as a career, that is, to professionally maintain a business’ accounts up-to-date. It’s easier to put the process into words than to execute it. And that’s the reason why it takes a long time for an accountant to acquire the needed experience and to achieve a level of trust and professionalism in the eyes of the business’ management.
Accounting as a job serves as the financial backbone of a business for it deals with money and its primary task is to record and analyze financial information. It includes the keeping of financial records and assurance that the records are accurate which makes it as a detail- oriented work. Gibson, Hutchinson, Homrigh and Leung (2011) claims that corporate scandals are widely known in the name of the business in which it cause extensive damages in the economy and society. These question the morality of businessmen in general and accountants in particular. With these duties and accountabilities, the concept of ethics is highly needed to be given emphasis in this field.
The authors used research methods including their knowledge, experience, and their understanding of the rules and regulations of the auditing and accounting profession. This article gives me information about the responsibilities of the management and the auditors in order to perform an effective audit in accordance with the
The goal of such analysis is to determine performance and efficiency of the firm management, as reflected in the financial records and reports. Its main aim is to measure the firm 's liquidity, profitability and other indicators that business is conducted in a rational and orderly way .Here ratio analysis is taken as the primary tool for examining the firm 's financial position for performance of Delhi Transco
Analysis of financial statements is useful in making a decision whether to grant or extend credit to a customer. 3. It is useful in deciding how much portion of the profit is to be distributed as dividend and how much portion will you want to retain? 4. It helps in assessing the future growth potential of the firm.