Internal Auditing Essay

23 Mar 2015 28 Feb 2018

3 (1,063 )

INTRODUCTION 1.0 Background Internal auditing is an independent appraisal function established within an organization to examine and evaluate its activities as a service to the organization. It helps an organization accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control, and governance processes (IIA, 2007). It delivers greater value to an organization by championing good governance, supporting enterprise ...

Click here to read more arrow

Developing Conceptual Framework Is An Impossible Possibility

23 Mar 2015 28 Feb 2018

5 (1,785 )

Accounting is playing an important role in nowadays society. It provides financial information to the user to make business decision. However, accountants have to follow accounting standards when they are providing the information. We may question what the principle of those standards is. Financial accounting theory was created as the principle in making standards, and conceptual framework for accounting built up. This essay is going to talk ...

Click here to read more arrow

Accounting Student Internship Report

04 Jan 2018

8 (3,014 )

Keywords: internship report accounting, reflective internship report Chio Lim Stone Forest (CLSF) was founded in 1985 and it started from a textile centre in Jalan Sultan to the present Wilkie Edge in Sophia road. CLSF is a member of RSM International, the 6th largest accounting and consulting firms worldwide, with 736 offices in 76 offices. Member groups in RSM International unite together to offer their clients the ...

Click here to read more arrow

Critical Accounting and Significant Accounting Policies

23 Mar 2015 04 Dec 2017

5 (1,801 )

After Enron's scandal, accounting world underwent dramatic changes. Lots of acts were proposed or released. On May 10, 2002, the Securities and Exchange Commission (which is SEC) proposed a document, that "Disclosure in Management's Discussion and Analysis about the Application of Critical Accounting Policies". One year later, SEC released final rule No.72, "Interpretation: Commission Guidance Regarding Management's Discussion and Analysis of Financial Condition and Results of Operations". ...

Click here to read more arrow

Effectiveness of Internal Controls Over Financial Reporting

23 Mar 2015 04 Dec 2017

6 (2,380 )

1. Introduction In 2001, Enron reaffirmed that their previous financial report had to revise as accounting errors existed in their computer system. After that, Enron the largest US corporate with assets of $63.4 billion faced the end road of bankruptcy suddenly. Four thousand employees face losing theirs job and retirement pays (Benston, 2002). It is not merely one person can break a solid business structure. The result ...

Click here to read more arrow

Traditional Budgeting and Budgetary Controls Weaknesses

23 Mar 2015 04 Dec 2017

6 (2,095 )

This answer briefs the practice of budgets in two entirely different businesses; one in a very stable and static market place and the other in a very dynamic, rapidly changing, innovative environment. Budgeting and budgetary control is commonly used in a traditional manner by most business entities in the world in spite of its manifold limitations. In a fast changing business environment, traditional budgeting need not be ...

Click here to read more arrow

Difference Between Cost Control and Cost Reduction

23 Mar 2015 04 Dec 2017

15 (5,967 )

Introduction A cost reduction program is a type of method which is to improve profitability of the organization or by expected to get a good result that flow to the bottom line of the financial statement and exempted from any serious damage to the organization itself. As this program is much more about reducing cost or reducing expenses of the organization, so a good cost reduction program ...

Click here to read more arrow

Absorption Costing Advantages and Disadvantages

23 Mar 2015 04 Dec 2017

5 (1,939 )

There are two main costing methods that this company can use, absorption costing and Activity based costing. Absorption costing and Activity based costing (ABC) are two similar systems that are used to assign indirect costs to cost objects. Absorption costing is also called 'traditional costing'; it is more simplistic and uses arbitrary allocation. On the other hand, ABC is more sophisticated and uses cause-and-effect allocation. This report ...

Click here to read more arrow

Why is Accounting Important in the Hospitality Industry?

23 Mar 2015 04 Dec 2017

3 (1,066 )

Broadly speaking, the process of financial management takes place at two levels. At the individual level, financial management involves tailoring expenses according to the financial resources of an individual. Individuals with surplus cash or access to funding invest their money to make up for the impact of taxation and inflation. Else, they spend it on discretionary items. They need to be able to take the financial decisions ...

Click here to read more arrow

Product Costing Methods: Strengths and Weaknesses

23 Mar 2015 04 Dec 2017

5 (1,691 )

Today's competitive environment requires manufacturers to know their costs for competing globally. A top notch costing system is one of the most powerful information tools a management can have; especially which provide a clear picture of the activities that are driving costs and the ways individual products and processes consumes resource. We can use costs in distinct ways. Product costing is used for strategic decision making. 1 ...

Click here to read more arrow

Colombia: Accounting and Auditing Standards Analysis

23 Mar 2015 04 Dec 2017

4 (1,276 )

Columbian GAAP According to the Constitution of Colombia, only Congress has the authority to issue generally accepted accounting principles. Through legislation, however, Congress can delegate this authority to the executive branch as well as to other institutions. The Central Board of Accountancy was formed to regulate the accounting profession ("Colombia", 2010). Under this board, the Technical Council for Public Accounting was created. The Technical Council was designed ...

Click here to read more arrow

FASB's Conceptual Framework Analysis

23 Mar 2015 04 Dec 2017

19 (7,571 )

Introduction The accounting conceptual framework has been criticized for not providing an adequate basis for standard setting. This inadequacy is evidenced through the FASB's standards becoming more and more rule-based. Nevertheless, no empirical evidence has been gathered to support the criticisms of the conceptual framework. We analyzed the five qualitative characteristics of accounting information from the conceptual framework in conjunction with an individual's intention to use/rely on ...

Click here to read more arrow

Non-Audit Services (NAS) Issues and Effects

23 Mar 2015 04 Dec 2017

10 (3,813 )

The provision of Non-Audit Services (NAS) by auditors to their audit clients reduces total costs, increases technical competence and motivates more intense competition. However, the recent corporate collapses in the US, Australia and elsewhere, was surprising our attention. The issue of Enron arouses great concerns on corporate governance revealing the audit independence problem when CPAs provide audit and NAS for the same clients. In the view of ...

Click here to read more arrow

Sarbanes-Oxley Act: Advantages and Disadvantages

23 Mar 2015 04 Dec 2017

4 (1,582 )

Discuss the strengths and weaknesses of the Sarbanes-Oxley (SOX) Act and describe how an IT department can meet the challenge of implementing SOX compliance Over the past ten years we have been exposed to a series of financial scandals. The effect has been catastrophic and society has required regulation to restrain corruption. In 2002, the USA senator Paul Sarbanes and Representative Mike Oxley sponsored the Public Company ...

Click here to read more arrow

Traditional Costing Methods vs ABC

23 Mar 2015 04 Dec 2017

4 (1,501 )

In this report I will attempt to discover whether it is feasible as a company to change the Traditional methods of costing we currently use to the more modern Activity Based Costing methods, looking at the benefits and drawbacks of changing and whether it is worth implementing these new costing methods to our company as a whole. Introduction / Background As a small local engineering firm we ...

Click here to read more arrow

Costing and ABC Costing Advantages and Disadvantages

23 Mar 2015 04 Dec 2017

5 (1,687 )

Activity Based Costing which is popularly known as ABC system has been considered as "an economic map of an organization's expenses and profitability based on organizational activities" according to Kaplan R; and Cooper R. "An activity is an event, task or unit of work with a specified purpose, for instance, designing a product, setting up machines, operating machines, and distributing products;" by Horngren, Foster, Datar. According to ...

Click here to read more arrow

Dangers of Escalation of Commitment

23 Mar 2015 04 Dec 2017

7 (2,680 )

This report analyses the issue of escalation of commitment to a course of action from the perspective of the pharmaceutical industry. Escalation can be defined as a situation where a failing venture is supplied with additional resources beyond the point of feasibility. As such, escalation carries substantial dangers for organisations by generating avoidable economic losses. The report inquiries into the generic causes of escalation by examining subject ...

Click here to read more arrow

Objectives of Standard Costing

23 Mar 2015 04 Dec 2017

5 (1,970 )

What is the definition of standard costing? Standard costing is the system of using standard costs. Standard costing involves using the predetermined costs/standard costs to compare with the actual to find the difference or variance. Variance can be adverse (actual result is worse than standard) or favorable (actual result is better than standard). An adverse variance tells management that if everything else stays constant the company's actual ...

Click here to read more arrow

IFAC's Code of Ethics: Analysis

23 Mar 2015 04 Dec 2017

6 (2,166 )

Code of Ethics is essential for both accountants and auditors as they hold positions of expectation that the community rely on them and the capability. The Code of Ethics is regulated by International Federation of Accountants (IFAC) at international level. Due to the company failures such as Enron and Equitable life, ethical behavior and independence has become more important. The Enron case clearly demonstrates the value work ...

Click here to read more arrow

Importance of Maximising Shareholders Wealth

24 Feb 2017 04 Dec 2017

9 (3,309 )

Introduction Firms may have different objectives to achieve. However in theory, a firm should set its' objectives to increase its value for its owners. Shareholders are the owners of a firm. Therefore according to theory maximising shareholders wealth is the fundamental objective of a firm. (Watson & Head -Corporate Finance principles and practice 2007) Investors generally expect to earn satisfactory returns on their investments as they require ...

Click here to read more arrow

Marginal Costing vs Absorption Costing:

23 Mar 2015 04 Dec 2017

2 (510 )

Marginal costing is also termed as variable costing, a technique of costing which includes only variable manufacturing costs, in the form of direct materials, direct labour, and variable manufacturing overheads while determining the cost per unit of a product. Where as Absorption costing, is a costing technique that includes all manufacturing costs, in the form of direct materials, direct labour, and both variable and fixed manufacturing overheads, ...

Click here to read more arrow

Revenue Recognition under US GAAP and IFRS

23 Mar 2015 04 Dec 2017

5 (1,731 )

International Accounting Standards Board (IASB) and Financial Accounting Standards Board (FASB) are working together to provide a single revenue recognition model that can be applied to a wide range of industries and transaction types. US GAAP currently has many industry-specific requirements that are not always consistent with each other. Keywords: revenue recognition, IASB, FASB, contracts The topic of the research is "Revenue Recognition under US GAAP and ...

Click here to read more arrow

British Airways: SWOT and Porter's Five Analysis

23 Mar 2015 04 Dec 2017

19 (7,203 )

Before establishing an analysis of the financial performance of British Airways, and stating the main reasons as to why this organization has been chosen as the proposed case study of this report, the most predominant issue at hand is to define ‘financial' and ‘business' performance. It performance of a certain organization stands for a measure, which shows how a company can efficiently use its assets from primary ...

Click here to read more arrow

Budgetary Control- Advantages and Disadvantages

23 Mar 2015 04 Dec 2017

5 (1,769 )

Budget and budgetary control are the two most important aspects of any business. The budgetary control acts as a complimentary aspect to budget and works and in hand. Budget can e termed as an accounting concept, whereby, an organization and its members, try to define the trend of activities of an organization during a course of time, depending on the past experience. Budgets, comes up various figures ...

Click here to read more arrow

Analysis of Conceptual Frameworks in Accounting

23 Mar 2015 04 Dec 2017

7 (2,644 )

Introduction International Accounting Standards Board (IASB) has begun a mutual project with US Financial Accounting Standards Board (FASB) to rebuild the existing frameworks and converge them into a common framework. First, some background. The US Securities and Exchange Commission (SEC) has proposed that companies required to file financial statements with the SEC begin replacing U.S General Accepted Accounting Principles (US GAAP) with International Financial Reporting Standards (IFRS) ...

Click here to read more arrow

Impact of the Enron Scandal on Accounting Standards

23 Mar 2015 04 Dec 2017

7 (2,530 )

Abstract Every firm and its managers are expected to maximize investor returns while complying with regulatory standards, avoiding principal-agent conflicts of interest, and enhancing the reputational capital of their firms. However, in practices, being ethically is not just about giving large sum of charity's money but recognizing and acting on potential ethical issues before they become legal problems are more important aspects to taking care of. Enron ...

Click here to read more arrow

Accounting Audit: Case Study

23 Mar 2015 04 Dec 2017

8 (3,141 )

The inventory valuation is done on cost basis, while the NRV (Net realizable value) is 10% below the cost. As per the accounting standards in Australia governed by the AASB, the inventory valuation is done based on the basis of lower of cost or realizable value, whichever is lower, which is as per the guidelines laid down under the provisions of AASB 102. However, since the cost ...

Click here to read more arrow

Methods Used to Evaluate Investment Projects

24 Feb 2017 04 Dec 2017

5 (1,730 )

Evaluation of the attractiveness of an investment proposal, using methods such as average rate of return, internal rate of return (IRR), net present value (NPV), or payback period. Investment appraisal is an integral part of capital budgeting (see capital budget), and is applicable to areas even where the returns may not be easily quantifiable such as personnel, marketing, and training Average Rate of Return (ARR) Definition: Method ...

Click here to read more arrow

Impact of Financial Reporting Scandals

24 Feb 2017 04 Dec 2017

6 (2,215 )

Introduction The first thing is character, before money or anything else. - J. P. Morgan Integrity is of utmost importance for a successful career in business and finance in the long run. Some believe that the world of finance lacks ethical considerations. Whereas the truth is that such issues are prevalent in all areas of business. The business environment in much of the world is reeling from ...

Click here to read more arrow

Pay As You Earn (PAYE) System: Advantages and Disadvantages

23 Mar 2015 04 Dec 2017

5 (1,874 )

PAYE (Pay as you earn) was first introduced in year 1944. This is a system used by HMRC (HM Revenue & Customs) to collect Income Tax and NICs (National Insurance contributions) from employees' pay, including directors of limited companies, as they earn it. OPERATION OF PAYE SYSTEM Under PAYE system, employers are responsible to deduct both Income Tax and NICs from employee when paying them their wages ...

Click here to read more arrow

Auditing Standards and Guidelines

23 Mar 2015 04 Dec 2017

6 (2,172 )

Introduction The regulatory environment makes it mandatory that organizations such as limited liability companies must be audited by an independent external auditor qualified under the regulations of professional bodies internationally or nationally to ensure that the company is working in accordance to the company law set by respective countries. An external auditor functions as an independent body appointed by and reports to shareholders to express an opinion ...

Click here to read more arrow

Managing Customer Relationships and Building Loyalty

23 Mar 2015 04 Dec 2017

8 (3,068 )

CRM This component will focus on managing customer relationships with the organization in order to enhance customer loyalty. Moreover, it will also discuss on the aspects of the virtual world and the strategy which will be implemented to use YouTube as a vehicle to communicate with the customers. Business Dilemma Yes I believe that the most influential person in café is the customer. Customers can help the ...

Click here to read more arrow

Product Costing System Types: An Analysis

23 Mar 2015 04 Dec 2017

5 (1,827 )

Introduction Management accounting as defined by Chartered institute of Management Accountants as “the process of identification, measurement, accumulation, analysis, preparation, interpretation and communication of information used by the management to plan, evaluate and control within an entity and to assure appropriate use of and accountability for its resources.” It supports the managers in their task of enhancing both customer and shareholder value by efficient and effective use ...

Click here to read more arrow

Earnings Management and Accrual Accounting

23 Mar 2015 04 Dec 2017

15 (5,745 )

EARNINGS MANAGEMENT Introduction There has been significant attention placed on earnings management from regulators, the financial press, and academic researchers in recent years. Most are in agreement that earnings management does occur; however, there is no uniform definition for what it is or how to detect it. What are earnings and what is earnings management? Simply stated, earnings are the accounting profits of a company. Stakeholders (current ...

Click here to read more arrow

Effects of Changing Accounting Standards

20 Nov 2017

7 (2,452 )

Proposed Research Topic: IAS 39 and IFRS 9: the effects of changing accounting standards for financial instruments on the financial assets management of a commercial bank in Chong qing Background: In 2008, a catastrophic financial crisis ignited by the bankruptcy of Lehman Brothers Holdings soon had a full scale break-out and dragged the world from prosperous growth to excruciating abyss of stagnation, even recession. People in ...

Click here to read more arrow
Get in Touch With us

Get in touch with our dedicated team to discuss about your requirements in detail. We are here to help you our best in any way. If you are unsure about what you exactly need, please complete the short enquiry form below and we will get back to you with quote as soon as possible.