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

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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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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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

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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

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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

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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

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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

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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

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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

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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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Window Dressing Of Financial Account Is Fraudulent Accounting Essay

23 Mar 2015

3 (1,011 )

According to Wikipedia Online "accounting is the art of communicating financial information about a business entity to users such as shareholders and managers". The Law of commerce states that business organisation must objectively record the accounts of the business organisation. These laws also state accounts must be clear and represent a fair and true record of the financial affairs of a business; these laws also put in ...

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Limitation of Ratio Analysis

23 Mar 2015

4 (1,258 )

Limitation of Ratio Analysis Learning Objective Explain to the participants on the limitation of ratio analysis. Important Terms Creative accounting. Accounting Policies. As we have alredy discussed, it is important to compare in order to be able to analyse and to be able to comment and subsequently recommend in order that a business is as efficient as ...

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The purpose of Corporate social responsibility

23 Mar 2015

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Corporate social responsibility (CSR) covers the responsibilities corporations have to the societies within which they are based and operate. More specifically, CSR involves a business identifying its stakeholder groups and incorporating their needs and values within the strategic and day-to-day decision-making process. Therefore, a business' 'society' within which it operates, which defines the number of stakeholders to which the organization has a 'responsibility,' may be broad or ...

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The Importance Of The Conceptual Framework For Accounting Accounting Essay

23 Mar 2015

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A not for profit organization is an organization that does not earn profits for its owners or investors. It uses surplus revenues to achieve its goals rather than distributing them as profit or dividends. Non for profit organization is formed for the purpose of serving a public or mutual benefit. The organizations do not have commercial owners and must rely on funds from contributions, membership dues, public ...

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The career choice

23 Mar 2015

16 (6,278 )

INTRODUCTION Career choice is a complex phenomenon that can be better appreciated through a study of its key components, i.e. career and choice (Webster's Dictionary, 1998). Dating back to the seminal works of Hughes (1937) and Goffman (1968), career has been the focus of many studies. However, the contemporary formulations of the concept by critical realists embody a layered conception that embraces subjective experiences and objective structures ...

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Study on Is Accounting Profession under Threat

23 Mar 2015

10 (3,635 )

Recent events in global financial world that is dissolution of companies due to continuous losses has made people to question the efficiency and honesty of the professional accountants in discharging their duties for the interest of public and society. These events have forced global financial scholars and experts to think about the future scope of this profession. this article mainly focus on challenges to accounting profession in ...

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Grays framework is an extension of Hofstedes societal values

23 Mar 2015

7 (2,771 )

Culture is said to be an identifying mark of any group of persons. The impact of this identifying mark is felt in everything that is done in that environment such that it is reflected in their daily and operational activities. In explaining the impact of culture on activities, Hofstede (1980: 26) defined culture as the 'collective programming of mind that distinguishes the members of one group from ...

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Examining the impact of the Enron Corporate Scandal

23 Mar 2015

3 (1,175 )

Enron is an energy-based company in Houston, Texas that deals with the energy trade on international and domestic based. Enron Corp. Is one of the world's largest energy, commodities and Services Company was created out of merger of two major gas pipe line in 1985. Enron was created by merge between Houston Natural Gas and Internorth. Houston's gas's CEO Kenneth lay headed the merger of the two ...

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Examining The Relationship Between Accounting And Finance Accounting Essay

23 Mar 2015

5 (1,906 )

Accounting is the methodical or precise recording, reporting, and assessment of financial deals and transactions of a business. Accounting also involves the preparation of statements or declarations concerning assets, liabilities, and outcomes of operations of a business CIMA defines Management Accounting as the process of identification, measurement, calculation, analysis, preparation, interpretation and communication of information used by management to plan, evaluate and control within an entity and ...

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The Published Financial Statement Accounting Essay

23 Mar 2015

4 (1,237 )

Annual report and accounts consists of different elements. A financial statement contains the financial information which is communicated to various users depending on their needs. The users can be internal or external users. The importance of this information varies, depending on the needs of specific users but according to the framework, the publication of financial information serves to reflect and to provide a clear image of the ...

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Kaizen Costing Method And Its Role In The Management Of An Entity Accounting Essay

23 Mar 2015

5 (1,662 )

1. Introduction The purpose of my article is to let the managers know about a costing method, which applied even in the current crisis, will not only lead to an avoidance of bankruptcy, but may lead to even make a profit by improving competitiveness and financial efficiency. Quality means to continuously meet the customers' demands, total quality means to continuously meet the customers' demands in terms of ...

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Importance Of Profit And Loss Account Accounting Essay

23 Mar 2015

4 (1,428 )

The Profit and Loss Account is a Financial Statement which summarizes a company's revenue and expenditure for a specific period of time, usually prepared annually or quarterly. These statements provide information that shows the ability of a company to generate profits by increasing its revenues and reducing costs. The Profit and Loss Account is also known as a "Statement of Profit and Loss", an "Income Statement" or ...

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Content Of Professional Ethics For Accountants Accounting Essay

23 Mar 2015

6 (2,118 )

Introduction Code of professional conduct for accountants, is the basic content of professional ethics for accountants, which the accountants should follow in the occupation activity and is used to adjust the behavior of accountants. Along with the economic development, the behavior standards, the working types and the social environment has had the change largely. Meanwhile, people's ideology and value is also changing. And the code of ethics ...

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Internal Control Over Fixed Assets Accounting Essay

23 Mar 2015

6 (2,388 )

Maintaining control over plant and equipment: subsidiary ledgers Unless internal controls over plant and equipment are carefully designed many units of equipment are likely to be broken, discarded or stolen without any entry being made in the accounting records for their disposal. The assets accounts will then be overstated and depreciation programs for such missing unites of equipment will presumably continue. Consequently net income will be misstated ...

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The Threat Of Djc To American Connector Company Accounting Essay

23 Mar 2015

9 (3,513 )

DJC, who built in Japan the most efficient connector plant of the world, is planning to build its first connector plant in the United States. It can utilise its highly efficient manufacturing process and supplying electrical connectors at a lower cost thereby causing a serious threat to ACC's market share. In this report, we have analysed the reasons behind both, the DJC's cost efficiency and the operating ...

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An analysis of Process costing vs. job order costing

23 Mar 2015

5 (1,727 )

Introduction Management accounting uses several costing techniques. Costing techniques are very important to the business management because they help them make sound decisions for the company. They also help companies keep track of the costs that they incur in the production process. The techniques are mainly for internal use apart from absorption costing which is used by external users like the shareholders and the creditors. This paper ...

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Agency Theory Versus Stewardship Theory Accounting Essay

23 Mar 2015

7 (2,449 )

Jensen and Meckling (1976) defined an agency correlation as a contractual set-up under which the business owner or the principal engaged a manager or the agent to execute some service on his behalf and may usually entail some decision making exclusively by the agent. The agency theory revolves on the basic proposition about humans, which deals with principals and agents as self-oriented focusing on exploiting their personal ...

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Understanding Cost Accounting and Depreciation

23 Mar 2015

3 (863 )

General: Delta's cargo, the major transportation services in the Gulf Coast region. The Cargo manager Driscoll was making plan to buy a new crane from J.M. Crane Company. He was having issues about the depreciation for the crane and also for the forklifts that he had. Case analysis: The overall cost of the machine is $ 2,288,000 on which includes (Shipping, assembly, Handling, Operator wages, Training cost, ...

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Evaluating the costing system in place at Apple

23 Mar 2015

8 (2,913 )

This report will address three issues of concern to Apple plc. First is the role and nature of management accounting information in strategic and operational decision making. Management needs to understand the type of decisions to be made at both strategic and operational levels, the traditional techniques that supported such decisions and the limitations of those techniques. Also, which contemporary techniques replaced the traditional techniques and why? ...

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The Limitations Of Activity Based Costing Accounting Essay

23 Mar 2015

5 (1,931 )

ABC Costing is a modern costing technique that is used to determine the cost of the product for the management reporting purposes. ABC Costing System is a tool that is used in decision-making process. However, it has some certain limitations. ABC Costing System is very costly to implement and maintain in a manufacturing and serving departments. Data concerning numerous activity measures must be collected, checked, and entered ...

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Determining How To Obtain Financial Data And Assess Its Validity Accounting Essay

23 Mar 2015

10 (3,824 )

This study is based on world's leading electronic and software based company Apple Inc. which is known as computer giant and it has already placed its identity as an innovative company and it has demonstrated that innovation can lead to market dominance. Apple encompasses a range of electronic and software product and services such as PC, Mac Book, iPhone, iPad, Apple TV, iTunes, Mac OS X, iLife, ...

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Posting Journal Entries To Ledger Accounts Accounting Essay

23 Mar 2015

7 (2,466 )

Analysing the transactions and recording them as journal entries is the first step in all the accounting cycle. It is begins at the starting of an accounting period , continues during the whole period. Some common data included in journal entries such as : Journal entry number; batch number; type amount of money; accounting period; and description; name, auto-reversing; date Journal entries are enter in chronological order ...

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Evaluating Ethics Of Bernie Madoffs Investment Securities Fraud Accounting Essay

23 Mar 2015

11 (4,310 )

Every business has an ethical responsibility not only to stakeholders but also to society at large. This responsibility should be in line with stakeholder interest and society's welfare. The government and regulators have a responsibility of ensuring that firms follow these ethical objectives. Failure to do so may lead to losses which will not only affect stakeholders but society at large. The financial fraud which was experienced ...

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The need for qualified staff in the hospitality industry

23 Mar 2015

31 (12,348 )

Abstract from main body The aim of our project is to discuss and analyze the need for qualified employees in the hospitality industry and the way they contribute to the development of this segment. Our objective is to find out if education is an indispensable element or if there is another string in the mix that accounts for the success of today's leading hotel chains. We had ...

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Accounting standards Setting Approach: principles-based vs rules based

23 Mar 2015

6 (2,069 )

Rules-based accounting is generally a list of detailed rules that must be followed when preparing financial statements. Principle based standards derive from a conceptual framework that provides for broad 'principles' to be adopted within standards and also requires professional and managerial judgment in relevance to particular transactions and events. US secretary Heary Paulson had once said "We must rise above the rule based mindset that asks Is ...

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Accounting Essays - Tax Evasion Popularity

23 Mar 2015

6 (2,316 )

Tax evasion is a national pastime that is growing ever more popular. Nick Montague defines taxation as the means by which a civilised society performs that sometimes-uncivil task of taking money from one group in order to give it to another. This definition highlights an important purpose served by taxes. As it is already known, that taxes are a fiscal policy instrument used by the government to ...

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Importance Of Cost Control In Construction Projects

23 Mar 2015

10 (3,756 )

The purpose of this report is to explain the importance of cost control in construction projects and its function. The Cost Control is an important process in construction project. It is widely practiced by contractors and needs to carry out throughout the life of project. The main objective of cost control of a project is to gain the maximum profit within the designated period within the budget. ...

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Management Practices Traditional vs Modern Innovative

23 Mar 2015

3 (1,063 )

In last many years, few management accounting innovations has been developed. Managers have to make decision on a daily basis as well make decisions regarding the future and how to survive and grow in an energetic market place with ever growing uncertain circumstances. Traditional or modern management accounting system give relevant information to all levels of management, financial and other information to make decisions about planning, control ...

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Management's incentives for establishing and maintaining strong internal control

23 Mar 2015

4 (1,431 )

25. Discuss management's incentives for establishing and maintaining strong 'internal control'. Before we start answer this question, let us understand what the definition of internal control is. Internal control is designed and implemented by an entity's management, those charge with governance of the entity, and other personnel to provide reasonable assurance regarding the achievement of objectives. In addition, internal control is also can be refer to a ...

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The Advantages And Disadvantages Of Traditional Absorption Costing And Activity Based Costing

23 Mar 2015

4 (1,485 )

The major distinguishing features of ABC compared with traditional costing system are that ABC systems assign costs to activity cost centres rather than departments. (Drury, 2008) Although traditional absorption techniques may apparently seem to less complicated or tedious as opposed to ABC, the report will show why, ABC is the best most accurate technique. The traditional technique used to determine which technique is better of the two ...

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The History and structure of IASB

23 Mar 2015

3 (950 )

On April 2001, in the needs for international accounting coordination, the International Accounting Standards Board (refer to IASB in the following context) took over its predecessor known as IASC (Board of the International Standards Committee) and was dedicated for international accounting standards settings. At the first meeting of IASB in London, UK, the main highlighted statement was that "any existing standards issued by IASC would remain being ...

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Ethics And Scandals In Financial Reporting Accounting Essay

23 Mar 2015

6 (2,148 )

Integrity is of utmost importance for a successful career in business and finance in the long run. Some believe that the world of finance lacks ethical considerations. Whereas the truth is that such issues are prevalent in all areas of business. The business environment in much of the world is reeling from the revelation of several financial scandals in the past few years. The optimism of the ...

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The definition, history and importance of environmental auditing

23 Mar 2015

7 (2,523 )

Introduction Environmental auditing is defined by the international chamber of commerce as the systematic examination of the interactions between any business operation and its surroundings. This includes all emissions to air, land, and water; legal constraints; the effects on the neighbouring community, landscape and ecology; and the public's perception of the operating company in the local area. An environmental audit does not stop at compliance with legislation. ...

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Top Down Approach For Audit Of Internal Control Accounting Essay

23 Mar 2015

5 (1,687 )

An audit of internal control begins by using a top-down approach. The top down approach starts with a companies financial statements, and the auditor gaining understanding of the risks related to internal control over financial reporting. Once the auditor has this background knowledge the next step is to look at entity-level controls and move downward to significant accounts, disclosures, and assertions that may indicate a material misstatement ...

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Suppy Chain Management At H C Starck Accounting Essay

23 Mar 2015

7 (2,796 )

I. Background: Richard Morse, a MIT graduate started National Research Corporation (NRC) as a process development company focused on developing vacuum technology. NRC initially used the technology to produce frozen orange juice concentrates and instant coffee. In 1950 NRC applied this technology for producing of high purity metals and started with tantalum (Ta) production in 1959. NRC went through a series of ownership, with HC Starck AG ...

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