In the world of business, managerial accounting plays a major role to control a business in an effective method. The management accountants of an organization focuses on the forecasting and decision making of that business. The accountants also help to make business planning, reviewing and analyzing the performance of the business. As an consulting management accountant, the report try to focus on the issues like cost controlling, quality control of the products, reviewing the efficiency of the budget and the in-depth cost that is followed by the business. The report not only try to identifies the problem but also consults the business how to get rid of the problems by using product costing methods and how to acievev an effective and efficient
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.
The article “Why is financial management so important in business?” defines: Financial management of a small business encompasses more than keeping an accurate set of books and balancing a business checking account, because we must know our financial management responsibilities affect all aspects of the business. The article basically tells us why is the importance of financial management have to do in business, which simply applies to the natural flow of monetary resources and maintaining the financial balance in the world. The article points out that some of the many effective ways of financing are: purchasing assets to create income, managing cash flow, lowering expenses, and tax planning. These suggestions helps the small businesses to keep moving forward and at most the people to have successful
Costs are incurred when nonstandard and inefficient systems increase errors and cause rework. Streamlined and reliable processes are less expensive to maintain. Proactive processes that identify and solve problems before they occur ensure that systems of care are reliable and predictable. A culture of improvement frequently develops in an organization that is committed to quality, because errors are reported and addressed. Improved communication with resources that are internal and external to an organization, such as, funders, civic and community organizations.
It provides much better insight into what drives overhead costs. ABC recognises that overhead costs are not all related to production and sales volume. In many businesses, overhead costs are a significant proportion of total costs, and management needs to understand the drivers of overhead costs in order to manage the business properly. Overhead costs can be controlled by managing cost drivers. It can be applied to derive realistic costs in a complex business environment.
Besides that, based on prior study measuring CSR performance is difficult and problematic. Besides, CSR disclosure also easier to be compare within the group of companies. 2.5 Audit Opinion (AO) and Earnings Management (EM) Relationship. To produce a high quality audit opinion report. Auditors need to be an independent person.
Resolving Ethical Dilemmas and Making Ethical Decisions Perhaps too often, business ethics is portrayed as a matter of resolving conflicts in which one option appears to be the clear choice. For example, case studies are often presented in which an employee is faced with whether or not to lie, steal, cheat, abuse another, break terms of a contract, etc. However, ethical dilemmas faced by managers are often more real-to-life and highly complex with no clear guidelines, whether in law or often in
Results will be in the form of descriptive report, facts, tables and figures that will cover the cost savings for the stakeholders and the company because of ignoring the collusion between auditors and management. We will analyze the potential advantages when the collusion is ignored and try to access real cases of the organizations when they ignored the collusion. This topic also relates to the management fraud, where fraud can be any activity that might be intentional in a way that would result in the loss of one party over the gain of the other party, and in the case of management and auditors’ collusion, that means that there would be loss of the stakeholders and loss to the reputation of the company in the market. Research Limitation: Collecting the primary data might not be possible because of the access problems to the companies. Companies might not be interested in revealing the information on the topic and might feel reluctant to fill the questionnaires.
I am going to talk about ethical issues in practice of management accounting. Actually my discussion relies on my studying to the articles have published by ( prof. Iwan Triyowon) as well as my opinion. As all we know that the management accounting is the most important thing inside the company because it is the source of the information which is needed to make a decision and we have to know that information can be used by internal or external users but in our discussion here we will highlight and pay a strong attention to the information has delivered to the external users such as investors because there are some managers cheating the outside users by using some tricks (wizard). I illustrate the earning management as an example for the ethical
Accountants are often privy to private and sensitive information about their clients, such as bank account numbers. It is very important that the trust between an accountant and their clients are not abused as accountants have a good deal of power in regard to their clients. It is also important that the industry itself is not condemned as an unethical industry as it could potentially danger business for all accounting firms. Poor ethics in accounting practices could result many negative consequences. The first general result is a lag in the business.