A comparison between US GAAP and German HGB

03 Oct 2016 17 Oct 2016

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A comparison between US GAAP and German HGB ByJanuary 2014 Supervisor: PERMISSION TO STORE RESEARCH PAPER IN LIBRARY AND MAKE AVAILABLE FOR USE I, Claudiu Ghiuzan, do hereby irrevocably consent to and authorize the Library of University of Applied Management Studies, Mannheim, to file the attached Research Paper entitled: “A comparison between US GAAP and German HGB”, and make such paper available for use, circulation, and reproduction ...

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The Usefulness Of Financial Statements To Stakeholders

10 Jun 2016

7 (2,669 )

Introduction: Finance for managers is very important subject for businesses. All stakeholders must have to know about it. Because it helps their businesses to run properly and make profit. Finance for managers helps people to know about the purposes and requirements for keeping financial records, what are the techniques for recording financial information, what are the legal and organisational requirements of financial recording, the usefulness of financial ...

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Accounting Essays - Sarbanes Oxley Act

23 Mar 2015 08 Mar 2016

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Sarbanes Oxley Companies Abstract Sarbanes oxley act 2002 was passed on July 30, 2002 and only the public companies are now feeling its impact. This act frequently called the “most significant accounting or auditing legislation since the securities exchange Act of 1934”. After the implementation it has established its demands to the companies for proper management and disclosure of risk. Nortel networks is a giant corporate in ...

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Accounting Essays - Accounting Goodwill Treatment

23 Mar 2015 08 Mar 2016

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Accounting Goodwill Treatment Introduction Arnold, J., Egginton, D., Kirkham, L., Macve, R. and Peasnell, K., ‘Theoretical Considerations’, in Goodwill and Other Intangibles, The Research Board, London, pp3-18. According to the authors, financial reporting of goodwill has assumed importance just recently. In its earlier definition goodwill just meant customer loyalty. They attribute two main reasons for the increase in goodwill’s importance. First is the increase in merger and ...

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A study on Fraud prevention and Detection

23 Mar 2015

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The aim of this writing is to present how fraud is defined today, why fraud prevention and detection is global concern and introduce main means of detecting and preventing fraud. It can be seen that fraud can range from small employee theft, fruitless behaviour, embezzlement of company`s assets and fraudulent financial reporting. This kind of actions can have strong adverse effect on company`s market value, reputation and ...

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Auditing Is The Accumulation And Evaluation Of Evidence Accounting Essay

23 Mar 2015

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Auditing is the accumulation and evaluation of evidence about information to determine and report on the degree of correspondence between the information and established criteria. Auditing should be done by a competent, independent party and communicate the results to interested users. (Elder, and others, 2007, p .4) The purpose of audit is to enable the auditor to express an opinion whether the financial statements present a true ...

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Factors that influenced the change in management accounting

23 Mar 2015

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This chapter will review the relevant literature and the understanding of the traditional role of the management accountant. The chapter will begin with an understanding of the concept of management accounting. This provides a background for discussion of the traditional role of management accountant. Finally, a review of all the factors that may influence on the role and promoted the change of the role are explored. 2.1 ...

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Current Purchasing Power Accounting Accounting Essay

23 Mar 2015

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Accounting theory is a set of basic assumptions, definitions, principles, and concepts surrounding the accounting rule. It includes the reporting of accounting and financial information to relevant or interested parties. There are several approaches that are used in the development of accounting theory. The two main ones are normative theory approach and the positive theory approach. Normative theory approach is a theory that is not based on ...

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An analysis of the Depreciation Methods in GAAP in the UK

23 Mar 2015

4 (1,309 )

Depreciation is the allocation of the cost of a plant asset to expense over its useful (service) life in a rational and systematic manner" (Weygandt, Kieso and Kimmel, 2003:416). There are three factors affect the calculation of depreciation, which are asset cost, useful life and salvage value (Weygandt, Kieso and Kimmel, 2003). Accountant in different companies will use various methods to compute the depreciation. There are straight-line ...

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Definition of fixed cost and variable cost

23 Mar 2015

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Fixed cost (FC): is a cost that remains constant, in total, regardless of changes in the level of activity. Fixed costs are not affected by changes in activity. Consequently, as the activity level rises and falls, total fixed costs remain constant unless influenced by some outside force. But fixed cost per unit decreases as the activity level rises and increases as the activity level falls. (Garrison etal., ...

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Exploring the objectives of Borealis new budgeting system

23 Mar 2015

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Borealis abandoned its traditional budgeting system in 1995 and implemented a new system, which is set to achieve 4 objectives: Improve financial management and performance measurement. Decentralise authority and decisions. Simplify the budgeting process. Reduce the resources used in the process. In this report, we would examine failings in the current budgeting process and modifications that would make the existing system more useful. We would then provide ...

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In trinidad and tobago the spiraling crime situation

23 Mar 2015

5 (1,990 )

Introduction In Trinidad and Tobago the spiraling crime situation has been committed predominately by young males. This study focuses on the relationship between the violence in schools and the crime situation in the wider society in Trinidad. By curbing school violence it will greatly reduce the criminal activities occurring in society. Studies have shown that young minds are easier to mould rather than adult minds. This ...

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Differences between financial accounting and management accounting

23 Mar 2015

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It is not so easy to define accounting as this word had many broad applications in the business, but a very precise definition by American accounting association is "the process of measuring, communicating and identifying economic information to grant informed judgments and decisions of information made by the users!" In today's world everyone follow the discipline of accounting weather they are in job sectors or running their ...

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The Arguments For Regulation Accounting Essay

23 Mar 2015

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History is filled with examples where crisis and scandals paved the way for regulatory interventions in the financial markets. The UK introduced major changes in its regulatory practice after the fall of the Barings Bank as a result of the financial scandals during the 1990s. The Financial Services Authority was deregulated in order to develop more rigid and consolidated regulations that conformed to the practice that were ...

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The Achievements Or Successes Of Both Eu And Iasc Iasb Accounting Essay

23 Mar 2015

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Introduction Growth in international trade has been on the increase over the years necessitating several organisations to be involved in the efforts to harmonise accounting practices either regionally or internationally. Among those, leading in this effort were the European Union (EU) and International Accounting Standards Board (IASB) (formerly International Accounting Standards Committee, IASC). This essay will look at background and harmonisation process of the two organisations and ...

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Fundamental concepts of the IASB framework

23 Mar 2015

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The International Accounting Standard Board herein referred to as the IASB, sets forth standards that outlined in its Framework for the Preparation and Presentation of Financial Statements. The IASB framework applies to general-purpose financial statements. That is, the primary financial statements (income statement, balance sheet, etc.) and the accompanying notes but not additional financial or nonfinancial information, such as directors' reports, management discussion and analysis, etc. The ...

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Examining major problems caused by worldwide accounting diversity

23 Mar 2015

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Multinational corporations have been contributors to worldwide accounting problems as they have made or contributed to changes in which different countries have been using their accounting principles not only have they change the way accounting standards carried out but have contributed to the different problems that have been noted out in this answer. It basically looks into these issues and also coming up with ways in which ...

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What is conceptual framework of accounting

23 Mar 2015

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Financial Accounting Standard Board defines Conceptual Framework as 'a coherent system of interrelated objectives and fundamentals that is expected to lead to consistent standards. The rules are set in accounting standard that are formulated from the framework, but it takes preferences over the framework during the time of conflict of interpretation. Conceptual framework is a type of intermediate theory which attempts to connect all aspect of inquiries ...

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The process of budgeting and its uses

23 Mar 2015

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"Budgeting is an important control system in almost all organizations (Armstrong et al., 1996; Ekholm and Wallin, 2000; Merchant and Van der Stede, 2003 cited in Hansen and Van der Stede)". In an organisation all the activities are coordinated together by preparing plans for the future. These plans are called as Budgets. "A budget can be defined as the quantitative expression of a plan action and an ...

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Is Accrual Basis More Reliable than Cash Basis Accounting

23 Mar 2015

16 (6,045 )

Currently, accrual based accounting is the most widely accepted standard for accounting valuations. Nevertheless, it is often argued, on theoretical grounds, that a cash basis approach is much more reliable to users. Our study focuses on the question of whether the accrual basis of accounting more reliable than the cash basis of accounting, where we compare the theoretical rational of interviewed industry professionals with theory. In order ...

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The Benefits And Challanges Of Accrual Accounting Versus Cash Accounting Application Accounting Essay

23 Mar 2015

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ABSTRACT This paper propose a depth understanding and critical evaluation of the benefits and challanges of accrual accounting versus cash accounting aplication for budgeting and reporting in Municipal Council of Kota Kinabalu, a local government in Malaysia. Motivation of this paper is drawn on the potential benefits of accrual accounting in budgeting and financial reporting of a local government as empirically established in other countries. However, despite ...

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The Education In Reduce Audit Expectation Gap

23 Mar 2015

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Introduction The issue of "audit expectation gap (AEG)" has been very significant to the accounting profession since mid 1970s and continues to be debated until today. In the 1970s and 1980s, massive corporate failures have caused the accounting profession to be severely criticized by the public. For example, in 1973, Equity Funding - an insurance firm based in Los Angeles - collapsed when its computer-based fraud was ...

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Calculation Of Finance Lease Straight Line Method Finance Charge Accounting Essay

23 Mar 2015

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Total lease payment = 5*6000= 30000 (Less) Market Price of asset = 22000 8000 Allocation of finance charge: = Finance charge = 8000/5 = 1600 No: of years Depreciation: = Market Value =22000/5= 4400 Useful life Liability Schedule: Years Liability at Beginning Finance charge Total Payment Liability at end 1 22000 1600 23600 6000 17600 2 17600 1600 19200 6000 13200 3 13200 1600 14800 6000 8800 4 8800 1600 10400 6000 4400 5 ...

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Advantages and disadvantages of outsourcing the internal audit functions

23 Mar 2015

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Internal auditing is an appraisal or monitoring activity established within an entity as a service to the entity. It functions are, among other things, examining, evaluating and reporting to the management and the directors on the adequacy and effectiveness of components of the accounting and internal control systems. An internal audit department in an organization is set by the management or appointed by the board of directors ...

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Examining issues with audit quality

23 Mar 2015

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The major accounting scandals occurred worldwide has brought the focus of public to the audit profession and the audit quality. Enron and WorldCom cases in United States and Parmalat case in Europe are the example of major scandals as a result of the failure of audit services. In Malaysia, the Transmile case which involved around RM530 million of accounting fraud has also addressed the problem about the ...

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A Critical Literature Review Of Balanced Scorecards Accounting Essay

23 Mar 2015

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This review discusses the "Balance Scorecard", an integrated strategic performance management tool (see Figure 1), which was developed by Robert Kaplan and David Norton in 1990. Recently, the Harvard Business Review hailed the Balanced Scorecard as one of the 75 most influential and prolific ideas of the twentieth century (1). Nowadays, in an era of globalization, customer power, and rapid change, it is imperative for organizations to ...

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Advantages And Disadvantages Of Making Accounting Rules Accounting Essay

23 Mar 2015

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Financial reporting is part of financial accounting which is the activity involved with "classifying, measuring and recording the economic transactions of an entity in accordance with established principles, legal requirements and accounting standards" (Collis & Hussey, 2007). Financial reporting provides information about both the financial performance and position of an entity, and is involved in the communication of financial statements to external users. The process of financial ...

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Different users of financial statements have different informational needs

23 Mar 2015

5 (1,629 )

Financial statements form the backbone of communicating the information about the company to the members within and outside the organization. According to International Accounting Standards (IAS 1.9) "The objective of general purpose financial statements is to provide information about the financial position, financial performance, and cash flows of an entity that is useful to a wide range of users in making economic decisions." (Deloitte Global Services Limited, ...

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The roles of external auditors in reporting fraud

23 Mar 2015

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In Latin, the word audit means 'to hear'. One person creates the Financial Statements, whilst the auditor 'hears' what they are saying, and passes his opinion to them. External auditing (EA) is "an examination of the annual financial report of an organization by someone independent". The purpose of an EA, to express an opinion on whether the information presented in the financial statements, reflect the financial position ...

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Defined Benefit And Defined Contribution In Pension Schemes Accounting Essay

23 Mar 2015

5 (1,818 )

Pension is fund that is built during the working life of the employee and then used to secure the income after retirement. These funds can be operated by employer (occupational pension) who invests over time or alternatively employee can invest in a fund of their choice (private pension scheme). Both of these schemes generate income after retirement. The pension funds are operated in many countries. According to ...

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Strategic Management Accounting Techniques Accounting Essay

23 Mar 2015

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Since the 80s a new term has been coined in management accounting literature: "Strategic Management Accounting" (SMA) (Simmonds, 1981). Since then, an ongoing debate about what strategic management accounting comprises has been originated. The terms SMA is used by accounting academics and sometimes practitioners in the UK, Australia and New Zealand, while strategic cost management (SCM) is commonly used in the USA literature. There are various studies ...

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The IFAC code of ethics for profession accountants

23 Mar 2015

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Introduction Nowadays, independence is major issues to attain highest level of performances to meet the public interest requirement. (Messier et al, 2006) Therefore, International Federation of Accountants (IFAC) has its mission to provide consistently high quality of service in the public interest by continues establish and strengthen the worldwide economic development and enhancement the accountancy profession with harmonized standards. (ICEAW¹, 2005)[Online].An IFAC Ethics Committee which also known ...

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Compare The Activity Based Costing Abc With Traditional Costing Accounting Essay

23 Mar 2015

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1. Introduction The objective for this assignment is to compare the Activity-based costing (ABC) with traditional costing. Andrade, Filho, Maia and Qassim (1997) found out that Activity-based costing (ABC) is being widely implemented as a substitute to traditional costing. They mentioned the cost of operations in an organization that are reflected by Activity-based costing (ABC) is more accurate and dependable compare to traditional costing. Turney (1996) defines ...

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Voluntary disclosure and corporate governance

23 Mar 2015

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Introduction: Theforces that give rise in demand of information disclosure in modern capital market stems from the information asymmetry and agency conflicts existing between the management and the stockholders. Therefore, the solution to agency conflicts lies in the ownership structure and the function of board of directors. (Jensen and Meckling 1976) found that the Ownership structure is assessed by the proportion of shares held by managers and ...

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A Definition of Audit Independence

23 Mar 2015

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Independence is fundamentally an attitude of mind for exercise of professional judgment and defined as an abstract concept that is easily subject to misinterpretation. Quality of integrity, objectivity, honesty, and impartiality are included in the concept to characterize independence. Independence is also a basic element to the reliability of auditor's reports. However, it does not mean that an auditor must be free of all economic, financial, and ...

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Measurement of assets, liabilities and equities in accounting

23 Mar 2015

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Across time, various accounting theories have been developed by a number of well-respected academics. However, the accounting profession is normally failed to embrace these theories. This paper has analyzed the different valuation models that are currently used and especially focus on historical cost accounting and exit value accounting. It first examines Edward's statement and then explained exit value accounting. After the introduction of several substitute accounting models ...

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The Role Of External Auditors In Detecting Corporate Fraud Accounting Essay

23 Mar 2015

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INTRODUCTION This introductory chapter intend to inform the reader on the multiples issues that will be tackled in this paper. So after describing the main issues, this chapter will therefore cover the rationale of the research, the aims and objectives as well as the limitations encountered, which all will be fully explored. Eventually a review of the structure of the research will also be conducted to conclude ...

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Design A Costing System For Use Within An Organization Accounting Essay

23 Mar 2015

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A costing system method means the procedure adopted to ascertain costs. There are several ways of ascertain costs. Companies choose among the alternatives depending on circumstances in which accounting is required to be made based on the product being manufacture and the nature of the industry making the product. Depending on the nature of Dynamic Models PLC, the appropriate costing method will be specific order costing where ...

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Zero Based Budgeting Emerged To Overcome The Limitations Of Incremental Budgets Accounting Essay

23 Mar 2015

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Zero-based budgeting emerged to overcome the limitations of incremental budgets. This approach requires that all activities are justified and prioritized before decisions are taken relating to the amount of resources allocated to each activity. Besides adopting a zero-based approach zero-base budgeting also focuses on programmes or activities instead of functional departments based on line-items which is a feature of traditional budgeting. Programmes normally relate to various activities ...

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Organisational processes in the Walt Disney Company

23 Mar 2015

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According to De Wit and Meyer (2010) Organisational processes refer to the arrangements, procedures and routines used to control and coordinate the various people and units within the organisation". This can be both formalized processes that span the entire organisation, or more informal organisational processes. The first category can be processes such as business planning and control procedures, final budgeting and reporting. Other control and coordination processes ...

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Definition And Importance Of A Budget Accounting Essay

23 Mar 2015

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A budget is a document that translates plans into money - money that will need to be spent to get your planned activities done (expenditure) and money that will need to be generated to cover the costs of getting the work done (income). It is an estimate, or informed guess, about what you will need in monetary terms to do your work. Importance of budget The budget ...

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Economic Value Added And Shareholder Value Added Accounting Essay

23 Mar 2015

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Agrawal (2007) defines shareholder value added (SVA) as the term used for the difference between the wealth held by the shareholders at the end of a given year and the wealth they held the previous year. In other words, SVA is the estimated future cash flows that are discounted to present value to calculate the value of the firm continuously. Measuring the current performance is based on ...

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Unethical issues of AIG

23 Mar 2015

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Company history          American International Group, Inc is a company whose operation began back in 1919. It was established back then by Cornelius Vander Starr as an insurance agency in Shanghai, China. AIG left china in 1949 after Starr had established himself as the westerner the sell insurance to the Chinese people. AIG headquarters then shifted from china to New York City, which is still the headquarters ...

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Budgetary Slack As A Management Control Mechanism Accounting Essay

23 Mar 2015

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Introduction Budgeting control system is one of the popular mechanisms in the management control systems that have undergone significant shifts of emphasis in both literature and practices. Budget slack meaning a deliberate underestimation of revenues and overestimation of costs than of actual budget is one of the aspects of budgetary control in the research of contemporary accounting management literature. The conventional wisdom on budgetary slack underlies a ...

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Audit Planning And Risk Assessment Accounting Essay

23 Mar 2015

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Chapter 6 [LO1] The audit plan documents detailed information about audit procedures to be performed on the engagement. T [LO2] Scaling the audit refers to fitting the audit work into the proper context in terms of the engagement's size, environment, and complexity. T [LO2] Statutory audits are required on all integrated audits performed in accordance with international accounting standards. F [LO2] An audit plan will be the ...

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Carrolls Pyramid Of Corporate Social Responsibility Model Accounting Essay

23 Mar 2015

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In the past, the common perception of a business responsibility was to maximize their firm's profit. This is because businesses were perceived to always put the shareholder interests first. However, businesses are moving towards impacting the socials and environments. Several research have found that businesses now have direct responsibilities to various other stakeholders which include preventing the harm of human rights and ensuring that there are solutions ...

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Depreciation And Provision For Depreciation Accounting Essay

23 Mar 2015

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Depreciation is the cost allocated as expense which has the effects of reducing the value of a fixed asset during the period it is used by a business. It is a non-cash expense and need to be charged to the Profit & Loss account yearly which lowers the company's profit which increasing free cash flow. Fixed assets are long life. They are bought to assist in the ...

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The purpose of accounting and its role in the management of a busienss

23 Mar 2015

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Introduction Understanding how a business operates and what makes it successful requires knowledge of the accounting process. This unit introduces you to the purpose of accounting and its role in the management of a business organisation. Accounting involves the recording of business transactions, and this in turn, leads to the generation of financial information, which can be used as the basis of good financial control and planning. ...

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Examining different types of budgets and their uses

23 Mar 2015

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Budgeting operations are very important for any kind of an organization, that is involved in making profits or not. This is the case because all forms of organizations have a number of resources, both material and human, which have to be managed in order to promote and effective realization of goals and objectives. As well, all organizations shall have a number of obligations and missions that have ...

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Structure Of Nigerian Financial System Accounting Essay

23 Mar 2015

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The need for transparency and clarity in the presentation of financial statements has been an endemic phenomenon which has contributed to the high level of corruption in Nigeria. This level of inadequacy in proper disclosure of relevant information is peculiar to most developing economies. Ali et al., (2009) buttressed the point that the level of disclosure of adequate and reliable information by companies in emerging nations lags ...

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Looking at Corporate Governance in TESCO Plc

23 Mar 2015

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Corporate governance basically is a kind of concept that has been described with thousands of definitions because of its relations to economic positions of the companies.The most basic ones that can be conceptualised are as Corporate governance is a system that regulates efficiency in management of business companies involving of certain codes of practice,contracts and legislations. 'Corporate Governance are the policies, procedures and rules governing the relationships ...

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Defining And Evaluating Methods Of Measuring Performance Accounting Essay

23 Mar 2015

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Performance measurement is the performance-based management process which is flowing from the organizational mission and the strategic planning process. Performance measurement are includes the objective and subjective assessments of the performance of both individuals and subunits of an organization such as divisions or departments. Performance measurement are effective in ensure that a strategy of organisation is successfully implemented by monitor an organisation's effectiveness in satisfying its own ...

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The History And Role Of External Auditors Accounting Essay

23 Mar 2015

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The first part of the assignment will look at the role of the external auditors, and the history of auditing will be briefly discussed. Then the second part will look at fraud, its definition, examples of fraud and the implications of fraud. Then finally before concluding the impact of International Auditing Standards on external auditors will be discussed. According to Arens et al. (2003) the auditor is ...

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The Economic Crisis of 2008 and the UK Government Response

23 Mar 2015

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Introduction The current economic crisis which had its roots in the US sub-primes market produced a profound shift in UK economic policy, Hodson et al (2009). The latter suggests that prior to this crisis UK economic policy centred on three principles which included fiscal prudence, low inflation and inadequate regulation and supervision of the UK banking sector. However, the result of the crisis was so severe that ...

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Corporate Governance Failures And Scandals In Recent History Accounting Essay

23 Mar 2015

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In this essay, we are going to contemplate law, which is one of the most fundamental jurisdictional areas at present. Value will be given to the unraveling of the significant area of company law. One should acknowledge that in the past two centuries, several corporate collapses have overturn the facts in the business world and brought many changes in the corporate field in UK and abroad. In ...

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An analysis of the budgeting in management accounting

23 Mar 2015

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With the fast development of in the area of management accounting, more and more managers are aware of the importance of the budgeting, "budgeting is an important control system in almost all organizations" (Stephen C. Hansen, Wim A. Van der Stede, 2004, Management Accounting Research, Multiple facets of budgeting: an exploratory analysis,), and it "provides an expression of the steps which management must take in the current ...

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Research Proposal On Threat To Auditors Independence Accounting Essay

23 Mar 2015

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History reveals that audit is a Latin word meaning "he hears". Auditing originated in those years when individuals entrusted with public funds were required to give an oral account of their handling of those funds. Porter (1997) An opinion of an independent chartered accountant is needed to give the public rest of mind that the sets of accounts presented were true and fair and also conform to ...

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Benefits of DuPont Analysis

23 Mar 2015

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The dynamic environment of the world today suggests that one should be apt enough to apply his skills immanent to a system and also external with respect to credit management function. These functions include financial planning, plausibility of a defined business strategy or whether a particular merger or acquisition is feasible or not. This has to be done in a rapid yet meaningful way so as to ...

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Cost Control Definition And Management Accounting Essay

23 Mar 2015

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A good knowledge about costs is vital in order to better understand what cost control is about. Authors have defined costs in different ways. The definition of cost was the money that was to be spent on production in the 1970`s (Van der Schroeff et al., 1970). This definition was later re-analysed and confirmed by Bilkerbeek(1992), van`t Klooster(1992) and Horgren(2005). Costs are the factors of production like ...

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A case study on Westmount Retirement Home

23 Mar 2015

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New information can be considered valuable in terms of decision making. From new information, the derivation of new and more applicable strategies can be utilized. In this paper, an analysis on how does new information becomes a valuable asset to transform Westmount Retirement home struggles with its current accounting system which affects its profitability to a more effective Activity-based costing system that can improve overall business operations. ...

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Conceptual Framework And Why Is It Needed Accounting Essay

23 Mar 2015

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According to FASB, the conceptual framework is a coherent system of interrelated objectives and fundamental concepts that prescribes the nature, function, and limits of financial accounting and reporting and that is expected to lead to consistent guidance. It is intended to serve the public interest by providing structure and direction to financial accounting and reporting to facilitate the provision of unbiased financial and related information. In short, ...

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Financial statements Accruals Prudence and Going Concern concepts

23 Mar 2015

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Discuss the problems for companies in applying the accruals, prudence and going concern concepts when preparing financial statements, and explain why at least two other concepts might also be important. Accounting concepts and conventions as used in accountancy are the rules and principles applied when recording economic events and in the preparation of financial statements, that all accountants abide by. Some of the fundamental accounting concepts that ...

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Analysis Of Financial Ratios Of Next PLC Accounting Essay

23 Mar 2015

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UK retail market has huge scope with £138.2 billion revenue during fiscal year 2011/2012. Next Plc. and MARK & SPENCER are direct competitors and listed in the FTSE100 UK companies. Analysis of financial statement gives an idea about the company's performance, profitability, as well as future development forecast. Company Overview Next Plc. Next Plc. is the major fashion retailer with wide range of customer appeal in the ...

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The Reasons Behind The Largest Corporate Scandal Of India Accounting Essay

23 Mar 2015

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'Satyam' means 'Truth' and the truth was revealed very late in case of India's one of the largest IT company, Satyam Computers Services Limited. By the time, Satyam fraud came to public light, Ramalinga Raju, the chairman of the company, had already committed India's largest corporate fraud ever. The first section of essay will discuss the reasons behind the largest corporate scandal of India. It will discuss ...

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Stewardship versus economic decision making in financial reporting

23 Mar 2015

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The main objective of financial reporting according to the IASB's Preparation and Presentation of Financial Statements framework is that of providing adequate information in order to enable shareholders conduct economic decision making. This brought the debate of whether such objective neglected the importance of the stewardship assessment by the part of shareholders. In the past decade the IASB and the US FASB have been working on a ...

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What were the business risks Enron faced

23 Mar 2015

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The original business Enron engaged in is natural gas transportation. The accounting Enron adopted is convention accounting that record actual cost and revenue when they generated. During this period, risks that Enron experienced were all normal business risks which could be circumvent and cannot imperil Enron's exist. However, abnormal risks came into being in the early 1990s when Enron expanded the natural gas pipeline business to "new ...

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The Concept Of Subjectivity In Accounting Accounting Essay

23 Mar 2015

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Many scholars and theorists have supported the concept of subjectivity in accounting and have also used this concept has an argument against academics that have a different perspective to this concept¸ who considers accounting to be objective. Morgan argued that accounting/accountants are 'constructors of reality', 'subjective' (Morgan, 1988, pg. 477) and they produce and represent situations in financial statements with some degree of subjectivity and one-sided ways. ...

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Examining the difference between a material weakness and a significant deficiency

23 Mar 2015

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The purpose of this memo is to summarize selected paragraphs of AS5 to form an understanding of how the top down approach is applied to an audit of internal controls. It is also to explain the difference between a material weakness and a significant deficiency by providing a list of indicators of material weaknesses, as well as an explanation of how both a material weakness and a ...

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Non Controlling Interests And Goodwill Accounting Essay

23 Mar 2015

5 (1,841 )

Introduction IFRS 3 which involves Business Combinations will build important changes in business combinations accounting. IFRS 3 develops more the acquisition representation and applies to more day to day transactions, because combinations by contract only in addition to combinations of common entities are incorporated in the standard. Nevertheless, ordinary managed transactions and the development of joint ventures are not factored in the revised standard. IFRS 3 applies ...

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The Industrial Training Experience Accounting Essay

23 Mar 2015

7 (2,703 )

Lawrence Wong & Co. was established in 1986 before the Malaysian economic recession in 1987. It has established itself as a recognized Management Consultancy Firm specializing in all kinds of management and consultancy services, including corporate secretarial, administrative, bookkeeping, auditing, taxation, business or financial planning and other management allied services. The company was founded by Mimi Gian Guek Poh and Lawrence Wong Fook Heng, both are ...

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The Impact Of Budgetary Control On Job Performance In An Organisation Accounting Essay

23 Mar 2015

5 (1,961 )

The effectiveness of any budgetary system depends not only on the appropriateness of its technical characteristics to the particular organisation and environmental circumstances to which it is applied, but also on the way in which organisational participants make use of information that it promotes. It is a common place that budgetary system is often ignored, sometimes manipulated and even falsified by those whom it is provided to. ...

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Historical cost accounting Advantages and disadvantages

23 Mar 2015

5 (1,897 )

Financial policy and accounting Financial policy is to determines hoe a business is to be financed, whether by equity or preference share capital, and extent to which reliance is to be placed upon long term or short term borrowing. In addition the credit and discount policies followed to be determined policies companies have a duty to publish account Historical costing Historical cost is the original monetary value ...

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The definition and features of a marginal costing system

23 Mar 2015

5 (1,979 )

Introduction The costs that vary with a decision should only be included in decision analysis. For many decisions that involve relatively small variations from existing practice and/or are for relatively limited periods of time, fixed costs are not relevant to the decision. This is because either fixed costs tend to be impossible to alter in the short term or managers are reluctant to alter them in the ...

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The importance of budget control in organization

23 Mar 2015

6 (2,075 )

Enterprise is a complex man-made running coupling system and a contractual association with body; it is very necessary to the business activities of its process and implements control. According to the modern management guru Robert • Simon's theory, management control achieve management objectives. Through the implementation of a series of management control lever, so it should increase the importance of budgetary control and devote energies to the ...

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The Internal Control Weaknesses At Enron Accounting Essay

23 Mar 2015

8 (3,043 )

The events were finally resulting the filing for bankruptcy in December 2001, started way much before fraud at Enron could be even suspected. Andersen played a major role in the collapse of Enron. Andersen failed two times regarding audit issues just a few years short time before the collapse of Enron, at Waste Management in 1996 and at Sunbeam in 1997. The two audit failures mentioned above should have ...

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Identify different types of cost that an organization would incur

23 Mar 2015

15 (5,840 )

In management accounting there are several ways of classifying the different types of cost. These classifications depend according to the immediate need of management. I have classified different types of cost and have explained each of them below. Cost classification Cost elements Direct cost Direct materials Direct labor Direct expenses/ overheads Indirect cost Indirect materials Indirect labor Indirect expenses/ overheads Types of cost Fixed cost Variable cost ...

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The Audit Risk Model Accounting Essay

23 Mar 2015

9 (3,341 )

The Audit Risk Model (ARM) is defined as: Inherent Risk is the auditor's measure of assessing whether material misstatements exist in the financial statement before considering of internal controls. Ignoring internal controls, if the auditor assesses that the likelihood of material errors is high, the auditor will assume that the Inherent Risk is high. As the Control Risk constitutes a separate component of the Audit Risk Model, ...

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Investigating the reasons for why firms change auditors

23 Mar 2015

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The accounting literature offers several potential explanations for why firms change auditors (i.e. auditor switching). These explanations include: changes in company management who may then prefer another auditor with whom they have some previous association or to remove an incumbent auditor associated with former management (Burton and Roberts, 1967), companies receiving qualified audit opinions indicating a conflict in the auditor-client relationship (Chow and Rice, 1982; Levinthal and ...

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Material Weakness And Significant Deficiency Accounting Essay

23 Mar 2015

3 (902 )

Auditing Standard number 5, as outlined by the Public Company Accounting Oversight Board, creates guidelines regarding the manner in which an auditor should approach an audit of a company's management's assessment of that company's internal controls over financial reporting, as well as an audit of that company's financial statements. Of particular note are the Standard's outlines of the top-down approach in which an auditor is expected to ...

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Programming Independence Essentially Protects The Auditor S Ability Accounting Essay

23 Mar 2015

3 (924 )

Programming independence essentially protects the auditor's ability to select the most appropriate strategy when conducting an audit. Auditors must be fair to approach a piece of work in whatever manner they consider best. As a client company grows and conducts new activities, the auditor's approach will likely have to adapt to account for these. In addition, the auditing profession is a dynamic one, with new techniques constantly ...

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History Of The Stewardship Theory Accounting Essay

23 Mar 2015

16 (6,372 )

The stewardship theory holds a different approach from that of the agency theory, it first premise is that, the company serves a large range of social purposes rather than just trying to maximize the wealth of shareholders. The stewardship theory also called the stakeholders theory assumes that corporations are social entities that affect stakeholders welfare and stakeholders are individuals interacting with the firms directly, therefore, they can ...

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What is budget system in an organisation

23 Mar 2015

11 (4,372 )

In this high competition market place today, every company need a planning and control tool to act faster to increase competitive advantage. Budget is the tool to plan, monitor and control daily activities to meet organisation goal with effectively and efficiently. The toolkit will help you plan, develop and use budgets effectively in your organisation. If you have a sound understanding of the principles of budgeting, you ...

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Scandals Of Corporate Governance And Company Law Accounting Essay

23 Mar 2015

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The idea of corporate governance in the broad concept of company law is of particular importance as it is essential for the companies to be controlled in a good manner. "Corporate governance is about promoting corporate fairness, transparency and accountability. The corporate governance structure refers to the allocation of rights and responsibilities of the board, managers, shareholders and other stakeholders, and points out the rules and procedures ...

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Gaap Has Allowed Some Degree Of Managerial Judgment And Flexibility On Managers Accounting Essay

23 Mar 2015

11 (4,180 )

For accounting method, Generally Accepted Accounting Principle (GAAP) has allowed some degree of managerial judgment and flexibility on managers to choose their own accounting method, disclosures and estimates which can make their business underlying with the economics. By applying managerial judgement, it will give chance for the company to achieve on their own desired level of earning .This judgement is referred as to earning management (Wensheng and ...

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The Impact On Marks And Spencer Key Stakeholders Accounting Essay

23 Mar 2015

16 (6,163 )

Corporate governance means that the companies which are administrated, controlled and directed. It performs how to set and achieve the objectives of the company, how to measured and monitored the risk and how to get the optimized performance. It creates new values to the companies through innovation and gives the control and responsibility appropriate with the risks concerned. It is a main factor to improve the organizational ...

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Memo On Internal Control Audit Accounting Essay

23 Mar 2015

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The purpose of this memo is to document the audit objectives with related planned audit procedures regarding the Faculty Professional Expense (FPE) accounts audit as well as to identify the internal control weakness and recommendations within the FPE process. The current concerns about the Internal Audit department will also be discussed at the end of this memo. Use of FPE Accounts: The objectivity of the use of ...

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Corporate Social Responsibility In Mauritius Accounting Essay

23 Mar 2015

20 (7,775 )

ABSTRACT The purpose of this study is to scrutinize the current practice of CSR that firms in the financial sector and the tourism sector, more precisely banks and hotels, have to engage themselves in CSR activities and to investigate the relationship between CSR and financial performance. In Mauritius Corporate Social Responsibility (CSR) has gained much popularity and has become a subject of concern, after that the government ...

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Automated Accounting Information Systems Accounting Essay

23 Mar 2015

10 (3,913 )

2.1 Computer Auditing 2.1.1 The introduction of automated Accounting Information Systems In earlier times, when all accounting information was processed and recorded in financial statements manually, it was relatively easier for the auditor to observe the audit trail as all evidence was produced in a manual/physical format. At that time, Information Systems (IS) were only a small integrated part of the accounting system which only automated minor ...

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The Importance of applying ethics to auditing

23 Mar 2015

6 (2,353 )

The objective of this report is to demonstrate the importance of using ethics in auditing specially for accounting, based on analysis of the concept and investigation. The paper will show the turning point from traditional auditing to ????? in relation to accounting process, including and evolving the advantages and capabilities of implementing the new concept that used in most of the organizations. The results of the report ...

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The Role of External Auditors in Accounting

23 Mar 2015

10 (3,853 )

Introduction Auditor liability has always been one of the main concerns of the public. Often falling under common law, tort law or both, public liability claims can arise out of unfair or unjust practices when it comes to auditing a company's financial standing (Lambe, 2007). The auditors can be held liable for approving a fraudulent account on behalf of a business organisation. Auditor liability, or failure to ...

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Accounting Essays - Comparability of Financial Statements

23 Mar 2015

8 (3,125 )

Comparability of Financial Statements. 1.0 Financial Statements and its Significance. In recent times, we have witnessed tremendous policy reforms and recommendations being made to tackle and control the manner in which businesses carry out their accounting work. Numerous accounting mismanagement and malpractices have only added to the urgency to bring regulations that seek to keep a check on accounting procedures followed by the corporate world. The failure ...

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The Sarbanes Oxley Act Dealt With Four Major Issues Accounting Essay

23 Mar 2015

6 (2,174 )

What responsibilities did David Duncan owe to Arthur Andersen? To Enron's management? To Enron's stockholders? To the accounting profession? David Duncan owed Arthur Anderson the responsibility to do what a reasonable employee would do in any situation to include a duty to work with reasonable care and skill. Not to disrupt business, not to compete in business against Arthur Anderson while still working for them as an ...

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Different Methods Of Cost Planning During Construction Accounting Essay

23 Mar 2015

6 (2,314 )

Cost planning in construction is necessary since building a house is a very expensive thing to do and any mistakes can be very costly to the client. It is very important to know how to plan and to ensure that the building is suitable as far as the resources are concerned. All factors should be considered to ensure maximum value for your money. It is also important ...

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Sole trader and partnership business

23 Mar 2015

3 (1,158 )

http://en.wikipedia.org/wiki/Sole_proprietorship http://www.irs.gov/businesses/small/article/0,,id=98214,00.html http://www.businesslink.gov.uk/bdotg/action/detail?type=RESOURCES&itemId=1073789609 http://www.myownbusiness.org/s4/ http://www.bytestart.co.uk/content/19/19_1/what-is-a-sole-trader.shtml http://www.bbc.co.uk/schools/gcsebitesize/business/aims/partnershipsrev1.shtml http://www.company-wizard.co.uk/Glossary/Private_Limited_Company.htm Among the similarities between a sole trader and partnership business is that they both have unlimited liability. Unlimited liability means in the event that the business becomes insolvent, the owner will have to be responsible for paying all the debts of the business even if it means selling off his personal assets to settle the debts. In a partnership, a ...

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External Auditors and their role in the Corporate Governance Framework

23 Mar 2015

7 (2,733 )

External Auditors check company's accounts and report to the company based on the accounts. Basically, the concern is how external auditors conduct these duties effectively. Legislations, such as The Companies Act 1965, have made great efforts to ensure external auditors conduct their duties and obligations effectively. The Code of Corporate Governance in 2001 and the amendment in 2007 have further enhanced the effectiveness of audit in the ...

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Financial Statements analysis on the basis of total comprehensive i...

23 Mar 2015

15 (5,897 )

As the main objective of the financial statements to reflect the economic value of a company in order external users make useful economic decision, and due to the last shocking breakthroughs in the financial system, IASB recently has worked on developing high quality set of accounting standers; International financial reporting standards (IFRS). IFRS transition has break out in 90 countries, though other countries are following. Concerning the ...

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The oil and gas industry

23 Mar 2015

6 (2,062 )

INTRODUCTION The oil and gas industry is essential to survival of the economy for different purposes. The industry provides energy and chemicals to the economy vital for transport, companies and household in U.K. Through the industry the government earn valuable and substantial tax and export revenue to support the economy. The figure below tells it own tale: v Three quarters of the UK's primary energy. v Employment ...

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Evaluating the financial performance of Deloitte LLP

23 Mar 2015

17 (6,614 )

All of the research topics are appealing although challenging but it was apparent that I have to choose the topic that meets the research requirements such as accessibility and quality of information and clear understandability of what is required in a particular topic. After spending a lot of time in selecting the best topic for me, I came to the conclusion that I should go for topic ...

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A Letter From Prison Accounting Essay

23 Mar 2015

7 (2,790 )

Computer Associates International, Inc. (CA) is a software company which sells software products for business. In the case, according to the Generally Accepted Accounting Principles, revenues for the software licensing should be recognized once a contract was signed, the software was delivered, and payment was reasonably assured. In Computer Associates, when the revenue recognition principles were met, it recognized the whole value of the licensing revenues quarterly. ...

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Managing Financial Principals And Techniques Accounting Essay

23 Mar 2015

13 (4,866 )

Price and cost is the key to costs because it can quite often decide the benefit costs which add up to form the price of the item. So, you would usually here the term Price Cutting when it comes to large companies to increase the benefit edge but when costs considerably go up they do effect the price of the item but usually producers would like to ...

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