Accounting System In Accounting

Generally, accounting is an information system that creates information about the financial circumstances of an organization and transmit data to relate parties about the arrangement of wellspring of the organization, the adjustment of these sources are due to the operation of the organization and to be more particular, for the purpose of certain stakeholder from the organization. All companies are responsible for keeping a journal, ledger, wherein journal transaction are combined together and inventory list where are recorded. However, ledger does not demonstrate any endeavor for decreasing of tax assessment, the nature of any falsification is ignored or in conclusion not given any important by tax auditor. Fraud aims to deceive intentionally

A firm is being operated with payment into equity capital, where the main source of income obtained is from selling products that have been transformed from raw material. Besides that, the firm potential sources are from shareholder and third parties. On a yearly basis, financial statement of the firm come to presences and the sources document from the transaction are been a lodge to accounting department or CPA. Any true analysis that is conducted according to a non-present statement will bring about a false way and it’s directly lead to information report and independent audit report that is accounted to management of the firm and also the evaluation which made by the bank to be a shareholder or to give debt to the third party are false. Therefore, it causes the present of a wrong decision and financial punishment such as tax loss for not being loyal to tax procedure law or punishment that make firms and it’s shareholder pay certain amount related to financial punishment. At the end of operating activities by the firm, balance sheets are formed in the accounting procedures and devise mechanisms of the firm and be finalized by final approval of salaried CPA s of the

Hence, for the first term, the studies have concluded that accounting operation which does not have approval are mentioned when the concept of tax evasion is abandoned. External accounting procedure uses particular accounting programs, utilized with special patches peculiar to the organization and are subjected to controls such as process management, risk management, internal control, and inspection as controls some errors are due to incomplete or inaccurate entries which cannot be avoided. Other than that, for the second term, the studies has been made on the famous accounting scandal of Enron Company. The firm’s auditor have been made a huge amount of money and disclose the mistaken accounts to the public. As the results of manipulation, the profits of the firm was above genuine rate and it’s affected the currency and inventory of the firm. The firm has made an evaluation of its investment by market