Strategic Management Accounting Techniques Accounting Essay

23 Mar 2015

5 (1,972 )

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

6 (2,232 )

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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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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The principles of lean and agile Manufacturing

23 Mar 2015

5 (1,752 )

All related literatures are reviewed in this chapter. Lean concept focuses on eliminate waste, while agile concept focuses on flexibility in supply chain. The theories that cite the topic of reducing cycle time in, which related to the lean concept. Detailed topics included in this chapter are 1. Principles of Lean Manufacturing 2. Product cycle time improvement 3. Principles of Agile Manufacturing 2.1 Principles of Lean Manufacturing ...

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A Critical Evaluation Of The Balanced Scorecard Accounting Essay

23 Mar 2015

6 (2,010 )

In 1992, Kaplan and Norton first published a paper about the Balanced Scorecard¼ˆBSC¼‰. It was a huge success and BSC soon became very popular all over the world. Before BSC emerged, organizations usually use traditional methods of performance evaluation focused mainly on financial measures such as ROCE, sales and profits. BSC translates an organization's mission and strategy into a comprehensive set of performance measures that provides the ...

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Examining the history and background of intangible assets

23 Mar 2015

14 (5,468 )

In the majority of 20th century, tangible assets is considered to be the main source of the commercial value, which include fixed asset such as buildings, land, manufacturing as well as financial assets such as bonds and their valuation. They were shown in the financial statement after valuation which is based on their cost and/or outstanding value. However, it is not mean that people do not recognize ...

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The accounting treatment for research and development

23 Mar 2015

3 (895 )

Under IAS 38 Intangible Assets, the accounting treatment for research and development is different. It depends on whether the expenditure is incurred from research or development. In the Ruritanian Accounting Standard, research expenditure is charged to the statement of comprehensive income and development cost is to be capitalized as a part of intangible assets. Broadly speaking, it is common treatment in most of companies. However, this accounting ...

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The importance to auditing of concept of audit risks

23 Mar 2015

3 (1,060 )

Messie, Glover, Prawitt & Boh, Margaret , 2007 stated that audit risk is the risk that the auditor expresses an inappropriate audit opinion when the financial statements are materially misstated. In simple terms, audit risk is the risk that an auditor will issue an unqualified opinion when the financial statements contain material misstatement. ISA 200 states that auditor should plan and perform the audit to reduce audit ...

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Traditional Budgeting And Its Criticisms Accounting Essay

23 Mar 2015

6 (2,125 )

Traditional Budgeting is a value-adding subject and has played a crucial role in management control in organizations. Budgeting has been seen as a considerable approach as well as a tool for evaluation and regulation of specific activities in a firm. It is recognized as "annual budgeting" by front-line managers. This type of budgeting process was used by companies to control demand of consumers/customers, adopt organization design and ...

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Important financial information by company to its stakeholders

23 Mar 2015

12 (4,513 )

Financial statement is a tool that provided important financial information by a company to its stakeholders about whether to invest in that particular company. However, recently, an increased frequency of restated financial statements in many high-profile cases such as Enron, WorldCom, Royal Ahold, HealthSouth and others have drawn far greater attention on the failures of businesses in which defection of financial reporting and corporate disclosure. This will ...

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How fall of Enron raised concerns about accounting issues

23 Mar 2015

7 (2,555 )

Enron Corporation of Houston was one of the largest companies in the world. From the start of the 1990s to mid 2000, Enron's stock price increased from about $7 per share to a peak of $90 per share. By December 31, 2000, Enron reported its turnover of $101 billion, and its market capitalization exceeded $60 billion, 70 times earnings and six times book value. Enron was rated ...

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Budgeting And Budgeting Constraints Accounting Essay

23 Mar 2015

5 (1,960 )

A budget is a quantitative or monetary plan for a period of time that aids the effective and efficient management of resources, by encouraging the effective planning, controlling, organising and controlling of resources. A budget is defined as 'a quantified statement, for a defined period of time, which may include planned revenues expenses, assets, liabilities and cash flows'(Davies & Boczko,p733:2005). Budgeting Constraints The use of budgets in ...

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The Importance Of Costs In The Pricing Strategy Accounting Essay

23 Mar 2015

19 (7,302 )

It is very important for companies to have a good pricing strategy as it than permits them to earn good profit margin on its product or services and at the same time making it appealing to the customers. Pricing strategies are very important part of business and different organisation spend large sum of money and effort to devise effective and efficient pricing strategies. Following are different types ...

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The Concept Of Internal Audit Accounting Essay

23 Mar 2015

5 (1,945 )

Internal auditing, it is not a new term for the world of organization. The concept of internal audit is old like 5000 years, at that time people of civilized communities which were economically and politically stable used this approach to check effectiveness of their taxes and businesses so they can check errors and safe the state property from dishonest taxpayers. In modern world especially in the United ...

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Why We Need Accounting Standards Accounting Essay

23 Mar 2015

3 (1,039 )

This essay talks about Accounting Standards which is important in financial. And it is interesting topic which discusses identified accounting standards which is important to each company. And it is analysis different things which relate with Accounting Standards as: International Accounting Standards (IAS), Accounting Standards Board (ASB), why we need accounting standards? , different accounting standards, and finally advantages and disadvantages of accounting standards Accounting Standards are ...

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Financial Accounting Subjective Not Objective Accounting Essay

23 Mar 2015

4 (1,235 )

Financial accounting can be defined as a process of designing and operating an information system for collecting, information in order to make financial decisions. (Andrew Thomas 2009). It is said to collect accurate financial data and other financial information, and to accumulate and combine it in an organized and systematic way, according to the principles and rules of accounting, for reporting purpose. Financial accounting is objective in ...

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A Budgetary Control Systems Accounting Essay

23 Mar 2015

8 (3,060 )

I have re-read my last years HNC paperwork and used my current years HND paperwork to help with the various aspects of the report. I used my HNC costing booklets and lecture notes, HND Investment Appraisal literature, HND Business Tax literature, HND Capital Allowances literature and HNC Standard Costing literature. I went to the library and used college resources such as ebray for information of more in-depth ...

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Problems In Traditional Costing System Accounting Essay

23 Mar 2015

6 (2,217 )

Traditional costing systems had been used for decades by organizations in making important decisions and there is not much change in the management accounting techniques since the 1920'. From the book published by Johnson and Kaplan in 1987, they stated that from 1920 to the mid 1980's, there were no new innovation in management accounting techniques and concluded that the traditional costing were less adequate in reporting ...

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Just In Time Benefits For Mcdonalds Accounting Essay

23 Mar 2015

9 (3,581 )

McDonalds uses JIT system in which it doesn't begin to cook (reheat and assemble) its orders until the order is being placed.Initially it used to preheat a batch of hamburgers and let them be under heat lamps for as long as possible.And eventually the burgers that were not sold were discarded.A special order had to be made to get a fresh burger during the old system.McDonalds has ...

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Comparison Of Financial And Management Accounting Accounting Essay

23 Mar 2015

8 (2,821 )

Introduction Financial accounting and management accounting play an important part in accounting information system .They co-exist in enterprise production and operation of management, constituting the modern enterprise accounting system together. Much information which management accounting required is from financial accounting, while financial accounting also put the established budget, standards organizations, and such daily accounting data from management accounting as the basic premise. However, the reality is that ...

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Main Advantages In Harmonization Of International Accounting Accounting Essay

23 Mar 2015

3 (859 )

Introduction The main purpose of this report is to point out the main advantages that could be benefited from International accounting and the obstacles to the harmonization of this system. The history of accounting began 600 years ago when first accounting records were found; the system of bookkeeping pair was gradually introduced in the early 14th century in some trading centres in Italy. After that due to ...

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Sainsburys corporate governance and information disclosure

23 Mar 2015

4 (1,570 )

This paper attempts to demonstrate the annual report of Sainsbury from its corporate governance aspects and evaluate the information provided in the annual report from 5 parts: the main corporate governance mechanisms, the ownership structure, the audit report, the audit committee, and the voluntary disclosures. 2.0 corporate governance mechanisms The chairman of the Board is Philip Hampton since 2004. It consists of three Executive Directors and six ...

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The Role of External Auditor in Corporate Governance

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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The Legitimacy Theory And CSR Disclosure Accounting Essay

23 Mar 2015

12 (4,533 )

The issue of corporate social responsibility has got a lot of attention in the business and political world since the early 1990's and the major reason behind this was corporate scandals. Organizations had started to realize that the basis on which they were achieving economic growth was unsustainable and hence there was a need to develop a process which would intend at balancing economic growth with environmental ...

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Analysis of the International Accounting Standards on Inventory

23 Mar 2015

6 (2,253 )

This eassy mainly introduced the information about the International Accounting standards of Inventory(IAS 2). First, we introduced the background of the IAS 2; then we discussed the major requirements of the standards and the importance of these requirements; after that we critically evaluate the IAS 2. Background The IASs, International Accounting Standards, which issued with the IASC setting up in 1973, are the common standards followed by ...

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The North Face Inc Accounting Essay

23 Mar 2015

5 (1,902 )

Financial accountants and independent auditors commonly face challenging technical and ethical dilemmas while carrying out their professional responsibilities. This case profiles an accounting and financial reporting fraud orchestrated by the chief financial officer (CFO) of a major public company and his subordinates. The CFO, who was a CPA, took extreme measures to conceal the fraud from his company's audit committee and independent auditors. Despite those measures, the ...

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The advantages and disadvantages of budget setting

23 Mar 2015

6 (2,170 )

Direct costs, indirect costs and overhead: Direct costs: those cost that can be directly traced to producing specific goods or services. For example, the cost of leather in making bags can be attributed directly to the cost of manufacturing these products. Depreciation and administrative expenses, are more difficult to assign to specific products, and so are not considered as direct costs. Indirect costs: those costs that not ...

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The formation and objectives of the IFAC

23 Mar 2015

3 (849 )

IFAC the (international federation of accountants) is a non - governmental and a global organization for accountancy professional, formed in 1977 in Munich -Germany at the 11th world congress of accountants'. Currently there are 164member bodies in 125 countries and jurisdictions, representing over 2.5 million accountants. Source: Q FINANCE - The complex world of international auditing regulation. Objectives of IFAC The main functions of IFAC are to ...

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Explain Meaning Of Ethics In A Business Context Accounting Essay

23 Mar 2015

8 (2,936 )

It's simply says that ethics are the attitude of individuals or groups in deciding the wrong and right decisions with ethical or polite behaviour. The term ''Business ethics'' has a same meanings that I discussed in ethics introduction. On very basic terminology ''Business Ethics'' defines as follows: ''Business ethics boils down to know the difference between right and wrong, also selecting to what is right in any ...

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The two approaches of accounting research

23 Mar 2015

5 (1,851 )

The positivist approach and the critical approach are the two approaches of accounting research. This article explains the concepts of positivist approach and critical approach, and then explains some of the problems of these two approaches. This article discusses the inter-relationship between accounting research, accounting standards and accounting practice. Through the research findings, this article use the case of intangible assets to illustrates how accounting research impact ...

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The influence of culture on accounting

23 Mar 2015

5 (1,844 )

Introduction Many studies have demonstrated that culture diversity had influenced accounting practice within national and international borders. Accounting can therefore be said to have been influenced by its environment, which includes the culture of the country in which it is being operated (Nobes & Parker, 2008) Mueller et al. (1994), cited in Alexander.et al, also stipulate that each accounting system is a product of its specific culture ...

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It is important to diferentiate between capital expenditure and revenue expenditure

23 Mar 2015

5 (1,601 )

Fixed Asset is last longer and not for resale. For example is premises, motor vehicles, machinery, and fixtures and fittings. Current Asset is liquid and bought for resale. For example is cash in hand, cash at bank, stock and debtor. i) Business entity concept is the affairs of a business are to be treated as being quite separate from the non-business activities of its owners. Example is ...

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The advantages and disadvantages of traditional Absorption costing techniques

23 Mar 2015

3 (1,177 )

Introduction Through the years when it comes to planning Managers has developed techniques and methods of forecasting future costs. One of such methods is Absorption costing and activity based costing (ABC) What is Absorption costing? Absorption costing is the traditional method of costing and stock evaluation, having been developed around the 1870s to 1920s is widely used by the manufacturing companies. The idea behind absorption costing to ...

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