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Project proposal of an accounting system
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Accounting is the system of recording and summarizing business and financial transactions; as well as analyzing, verifying, and reporting the results of a business to external and internal users (John, J. Wild, 2016 pg. 4). External users can be anywhere from potential investors to an audit agency. Internal users are people within the company that can use the information to get a picture of how the business is doing. In society, accounting is used to show the world how a business is performing in order for them to make a decision to invest in the company, use its services, or to pull out their investments. Businesses use financial statements in order to find areas they need to fix such as; cutting some expenses, whether it is worth keeping …show more content…
People have found ways to cheat money out of companies and customers through different types of fraud and schemes. Sometimes workers, our society, and business owners are not watching out for the clues. Fraud can be described all opportunities a person can devise by which an individual resort to, to obtain an advantage over another by deceiving, and creating false accomplishments (G. Michael Lawrence, Joseph T. Wells, 2004). A scheme can be described as a large scale systematic plan or arrangement for gaining assets or putting an idea into effect. The effects that corrupt financial accounting has on businesses and society needs to be further analyzed, as well as possible solutions and can be done through three objectives: Understanding the different types of corruption found in accounting, identifying and analyzing the effects corruption, and making people aware of solutions put in place to limit the amount of corruption happening that are going …show more content…
Due to embezzlement a company can incur losses with the continual movement of money in employee’s pockets. Inflation on the other hand, is not bad in the short-term for businesses, but effects society the most. If businesses are ever caught practicing illegal activities, their reputation will be at stake with consumers, potential investors, partners, etc. The most important thing a business should have with its clients is trust and without it a business is likely to fail. Companies might see the need to inflate their inventory to recover lost resources and in turn can provoke other companies to outdo them. With the losses of its market share, resources and time it will also lose its customers, partners, and the general public trying to convince them that they are still worth putting their trust in. The shareholders and investors start to pull out of the business because of loss of confidences that the company can provide them a secure holding in their finances. With bribery, asset misappropriation and embezzlement a company’s resources are not being used the way that they should be, causing the company to be inefficient. Resources that would be used for important operations within the business to secure customers, partners, and clients are instead being wasted or benefiting the people who misusing
I believe that asset misappropriation by accounts payable fraud is occurring at Wayland Manufacturing Company due to a lack of proper internal controls. Making the company’s Chief Accountant responsible for additional day-to-day functions provides him with opportunity to commit by creating fictitious vendors with his information and then creating fictitious invoices. Newbaker can then conceal his fraud by approving the invoices for payment. Employees working at an organization for more than five years are more likely to commit fraud. Therefore, Newbaker’s six-year history with the company has made him trustworthy and very knowledgeable, which could indicate involvement in asset misappropriation. The high employee turnover could represent a past fraudster leaving before getting caught or employees refusing to continue with the asset misappropriation. In addition, the varying monthly accounts payable transactions ranging from the lowest being April 2014 and
Management accounting in organisation is very important for decision-making and to make the business more efficient and therefore increasing its profits. Is the process of preparing accounts that can help managers to make day-to-day and short-term decisions, by providing them with accurate and timely key financial and statistical information...
The development of a country depends generally on the work and values of its society. The image of a country can be severely damaged by certain actions and behavior of their citizens, like bribery. When a country is known as a corrupt nation, not only will the facade of the country be affected, but also the economy. Establishing measures to eradicate corruption are urgently necessary. Corruption has been around since the begging of time, but currently is more common in business, more specifically, international business. Although some organizations have been formed, and conventions have been signed in order to end it, corruption is still one of the mayor problems around the world. An ethical view might bring more insight to why bribery and corruption is not a moral act and why more severe measures should be taken into consideration.
Fraud auditing is an intentional misinterpretation to obtain benefit. (Mintz and Morris 2008, p.53) It includes financial reporting frauds and misappropriation of assets, which are best represented by misstatement of debts in Enron scandal and theft of assets in Tyco International Scandal respectively.
Everyone wants to be successful. Most people measure success on the basis money. The world operates its daily activities around money, whether it is from the perspective of an individual providing for their family or the perspective of a chief executive officer managing a high profile business. Everyone’s goal is to be a success. In the corporate world of big business, success is always measured based on the bottom line comparing company profitability from one year to the next in comparison to its competitors. The only tool to accurately measure the bottom line of a corporation’s financial standing is through the use of financial statements. Understanding financial statements can be overwhelming. There are four basic financial statements: a balance sheet, an income statement, a statement of retained earnings, and a statement of cash flow (The Four Basic). Each of these four statements is broken down into smaller detail representing the inflow and outflow of financial transa...
According to Marshall, McManus and Viele (2004), accounting is “the process of identification, measurement, communication of information about a business for the purpose of making decisions and informed judgment” (p.3). Decision makers look at balance sheets, income statements, changes in the owner’s equity and cash flow statement as documentation of the viability of an entity. Misrepresentation of the financial statements can place doubt of profitability in any company. The need for accountability and regulation of accounting practices is important in preserving trust in the business community.
The remainder of this paper will address the findings of a study outlined in the noted case. It includes a discussion of the restrictions placed on the accounting profession and whether these restrictions eliminate any ethical concerns. This is followed by an examination of h...
Accounting ethics is primarily a combination of business and human ethics; the moral of theses ethics is to “serve the public interest.” As accountants and auditors they need to follow moral values and judgments in regards to accountancy. When working with fortune 500 companies they have a duty to also follow professional ethics. Accounting was first introduced by Luca Pacioli, and advanced by government and professional groups.
Businesses large and small, public and private, for profit and nonprofit organizations have keep financial recording. Collecting, recording and maintaining this information called accounting. Accounting function helps managers of organization to make decisions and planning and for moving an organization forward in a financially sound manner and it helps to increase transparency of the companies.
Accounting is basically a service activity. Its purpose is to provide quantitative information that principally used by the managers, investors, tax authorities, and other decision makers to make the financial decisions within companies, organizations, and public agencies. Accounting is also widely known as the “language of business.” An accountant measures, communicates, and interprets financial activities. They prepare financial statements or reports for individuals, businesses, government agencies, or other non-profit organizations. They use the accounting systems to categorize the expenses and income to the typical groups. They also keep tract of the money received or paid out to see if the transactions are accurate and complete. Accountants are familiar with the computer operation. They use the computer...
Ethics is derived from the greek word ‘ethos’, which means character and the latin word ‘moras’, which means customs. Thus ethics is defined as the personal and professional behaviour with regards to the values, customs, behaviour, principles and morals of society (Senarante, 2011). Professional ethics can be defined as the personal and corporate standards of conduct that is carried out by members of a particular profession. For example, medicine, accounting and engineering. Professional ethics or business ethics cover larger areas than the law, and although an issue may not be illegal, it can be considered as an ethical issue (ATT Ethics, 2013). Business ethics can be defined as the policies and principles that act as operational guidelines
The quantity of accounting fraud cases keeps on rising. Fraud is a consistent thing that will reliably be around, and in a bigger number of routes than just a single. An extensive apportion of organizations out there fight with fraud, either from within the organization, or from outside the organization. Knowing how to manage this is essential for an organization to be productive over a drawn out extended period of time. The investigation regarding the matter of accounting fraud will utilize sources from the web and the DeVry school library. The principle territory we are planning to address is accounting fraud and how it could impact an organization by answering, the who, what, when and how. Its goal is to increase the awareness
Main view of this report is to explain how the accounting plays a major role in banking, finance and other sectors of business. To decide this, the following questions are explained as follows:
Accounting aids the government and organisations in decision making for their financial stability. This numerical data helps solve real life problems and contributes to how the economy and businesses perform.
Accounting is a vital element of business. It records the way a business has grown and, after analyzing figures, suggests the way it should go in the future. Furtunes are gambled on the advice of accountants.