Accounting

Accrual-basis and Cash-basis AccountingAccrual basis accounting matches revenues with expenses for a particular period of time. Income is recorded when it is earned even if the item is not yet been received and the expenses incurred for the period not have yet paid. Total expenses and revenues are shown in the financial statement whether or not the money was acquired or paid out in a particular period of time. This accounting method gives a more exact picture of the actual cost and revenues of the...

As it is evident from the analysis of the firms condition through ratios that the firms financial position would be worse as compared to the previous year as direct effect of increase in the associated costs of market development expenditures and rise in the costs and other related expenses the firms decision to open a new office would be effected by the following considerations The major consideration for the firm would beDetermining the viability of the proposed investment.Deciding the viability...

Corporate governance is a vital element in organisational success.  Management, leadership, communication systems and even decision making systems in an organisation are affected by the corporate governance structures that an organisation has in place.  Firm performance is considered by both internal and external organisational stakeholders as an objective measure of the efficiency in utilising resources.  To a management team, the performance level that they can muster is viewed...

I am a person who tries not to miss out on opportunities.  I also love discovering what makes people  and organizations  tick. These have opened many interesting avenues for growth in my studies and career. My career path has been marked by a succession of moves that will help inch me closer to the realization of a long-held dream  to be the CEO of a major company.  This dream has enabled me to work with purpose and find a measure of work fulfillment. Through my professional...

Capital project funds are specific funds which are utilized for the construction of or for acquiring significant capital assets. The monies for this are acquired via the issue of General Obligation Bonds, taxes or grants from governmental agencies of public sector vehicles. There are specific restrictions as to the use of these funds the duration and use of the residual amount and the constantly occurring costs are accounted for in one expenditures account. The funds created for the expansion of...

An auditor has the responsibility of performing and planning audit in order to obtain assurance that is reasonable on whether or not the financial statements prepared by a company are free from any material misstatement, regardless of whether such material misstatements are caused by frauds or errors. Due to the nature of the evidence of audit and the fraud characteristics, the auditor can only be in a position of obtaining reasonable assurance, but not an absolute one that material misstatements...

MaterialityMateriality is a term used in accounting and auditing that refers to the degree of an exclusion or misstatement of accounting information where by in the light of surrounding conditions, it makes possible that the verdict of a realistic person depending on that accounted information would be influenced by the misstatement or omission. It directly depends on the size of an error. Thus, an auditor verifies whether the financial statements are to the acceptable standards in financial framework,...

Internal controls that are effective, on financial reporting offers assurance that is reasonable, in regard to the dependability of the financial statements preparation and reporting, of an entitys financial statements especially for external use. Since an auditor owes duty of care to the external users as well as all the stakeholders who will make their decisions based on the audit report, it is very important for an auditor to gain reasonable understanding about the internal controls of the entity...

Private finance initiative has been becoming an increasing area of focus in recent times. It is not a new concept and has already been in extensive use since its inception in Australia and the United Kingdom. However, with the current financial crisis, it has seen increasing prominence as it is being utilizied as the primary vehicle for infrastructure development by the countries that initiated financial stimuli to boost their economies. The link between the public and the private sector that PFI...

The board of directors has various roles and responsibilities in the petrochemical industries in Saudi Arabia. There are several activities which are carried out in organizations. It requires some management to oversee all the activities done in a company. Petrochemical industries in Saudi are managed and controlled by board of directors. It is the mandates of the board of directors to control the various activities carried out in an organization. Board of directors may acquire different titles...

The main area that this study aims to cover is the role and responsibilities of the Board of Directors in an organization, especially in reference to the Petrochemical Industry in Saudi Arabia. The MethodologyThe Methodology will be mainly based on ethnography. According to ethnographic principles of research the study would be based on qualitative date and would require research to be done across the field of study using methods of interviews, participant observation and detailed open ended questionnaires...

1. From the situation at hand, one can contend that this company does not have appropriate accounting and internal controls against the prevention and detection of fraud.  It is true that the store has an excellent surveillance system but important accounting and internal controls are lacking.  As one can notice, at the beginning of this case the company does not have any cash control since several reports on falsified checks and stolen credit cards have been reported and also via the...

This comprehensive study has been carried to highlight and examine the factors that cognitively affect the independence of auditors barring them from executing their auditory duties successfully. The relationship between the audit function and the audit committee involved is one of the major setbacks experienced by independed auditors. Study reveals that an unstable relationship between these two figures might affect the individual objectivity due to pressure from the other party compromising the...

The woes of the banking sector have just refused to go away. They were initiated by the global economic credit crunch which progressed and moved away from the financial sector to affect most other sectors of the US economy. While on the brink of collapse, most of these troubled banks have had to seek the lending hand of the government in order to fight their way out of the economic quagmire. The critical issues that have emerged from these events have centered on how, if at all, the government had...

Cases of fraud in the recent past have significantly increased. The consequences are that companies have suffered immense losses in terms of money and bad publicity. This has made various companies to come up with various ways of how to detect, identify and prevent cases of fraud. Many technological methods have been applied to do this but the best approach to dealing with fraud is by use of human brain. For the human brain to do this effectively, it has to be trained on how to detect signs of fraud...