The current cost accounting presents the economic status of the business in relation to the economic which present the reality of the transaction which in turn provides better and more useful information than historical costing. As business environment are rapidly changing and current cost accounting will show the underlying business performance in align to the economy to present a fair value in the balance sheet. As the information acquired is debatable it can provide much more meaningful information to the user as it reflects the current price. Another advantage is that current cost accounting provides better measurement of efficiency. The rapid development and abundance use of contract based business means that under cost-based system there are some assets and liabilities are not included in the balance sheet at all because it has not been incurred or are not showed due to circumstances like the exchange rate, interest rate and even tax rates.
Records provide access to standards and policies, and evidence of what was done or decided in the past. They enable organizations to protector dissimilar to scam and to protect their rights and assets. Secondly, organizations use records to support accountability, when they need to prove that have met their pressures or complied with best practice or established policies. Organizations are accountable in many ways, to meet legal, regulatory and fiscal requirements, endure audits and checks, or provide explanations for what was done. Internally, records are used to prove or assess performance.
The best environment to achieve audit quality is where there is support from all the participants in the firm or in the financial reporting supply chain. To achieve the wanted audit quality auditors should comply with relevant auditing standards, standards of quality control, ethics and every other regulatory requirement. (www.ifac.org) The auditors are responsible for the quality of individual audits, and should seek to ensure that the quality audits are conducted consistently. A quality audit is likely to be reached in the auditor's opinion on the financial statements are reliable, and which is based on sufficient appropriate audit evidence obtained by a team those exhibit appropriate values, ethics and attitudes. To maintain the audit quality, IAASB made a project to develop a Framework for Audit Quality.
The secondary sources of tax law can be resources such as “treatises, legal encyclopedias, journal articles, American Law Report (ALR) annotations and loose-leaf services” (Yale University, 2015, para. 5-7). Treatises are works that focus on particular areas of law. Additionally, treatises will usually reference cases and statutes of a particular area of law (Yale University, 2015). Legal encyclopedias are great sources of information that provide high-level information for a particular jurisdiction (Yale University, 2015).
This lead to decrease the cost of investment for building the quality brand. Therefore, return on investment (ROI) will increase. The third benefit will be able to focus on running the hotel instead of managing the building. This lead to decrease the opportunity cost as the time and effort are allocated on increasing the services quality instead of maintaining the building. Therefore, the hotel chains will get more economic profits.
This would be expansion and would also give Tim the chance to hire “enough staff of the right quality”, something he was previously worried about. However as I have said, de-layering should in the long term reduce costs and so increase chances of finance towards expansion. Another effect of de-layering is that it increases the decision making process and decreases the channels of communication. This means that as there are less people to go through and thusly less people to confirm what needs to happen with. Because of this efficiency should be improved within the business when orders are given.
Hence this clearly shows that the accrual method is more effective as the results from Zarandi, et al. (2013, p. 1) research shows that overall the Accrual method is better for "managing accounting affairs compared to in comparison to the cash accounting method." On the other hand, (Adrianna and Alexandra, n.d. ) are highly critical of the above view of accrual accounting being more preferred than cash accounting as cash accounting is more favourable... ... middle of paper ... ...nesses in particular small businesses. However, Linda, (2007, p.11) argues that cash accounting "does not match revenues and expenses to the actual period in which the transactions occurred". Therefore this becomes a disadvantage for cash accounting.
As an on looker, I agree with the argument that fair value accounting presents a better representation of reporting assets. It is most reliable and accurate. Any company both large and small needs to consider what would be describe as a better financial portfolio for their business especially if they looking to attract outside investors. Even though investors will most likely do the homework and thoroughly evaluate the company’s financial health before investing any capital in the business. Due diligence should start within the company when reporting assets and liabilities.
It is very important for business in the global market to have consistence when reporting their financial statement in order to maintain the effectiveness and reliability of financial information. The stability in the way information is reported using the International Financial Reporting Standard permits users to have a stable set of guide lines that allows a more in depth comparable analysis of a company’s net worth across a period of time compare to other similar business sectors. Having a set of principles is very essential tool in reporting finances in the global market. The IFRS establish a set of principles that allows a person or other users to make an assessment on the stability of the global market through company’s financial statements that are cohesive in nature. The stability in reporting information on the financial statement is imperative to the economic, growth, and development of the business sector and to other user of financial information to draw conclusions based on the information at hand.
Some internal auditors demonstrate their competence and professionalism by obtaining globally recognized professional certifications like the Certification in Risk Management Assurance or the Certified Internal Auditor. The international standards of internal auditing, coupled with the Code of Ethics, encompass all the mandatory requirements of the International Professional Practices Framework (IPPF). Therefore, adherence to the international standards and the Code of Ethics demonstrates conformance with all the mandatory requirements of the IPPF. The standards outline the basic principles that direct the professional practice of internal auditing. The objective of the international standards is ensuring the conformance of internal auditors and the internal audit activity to the standards regarding proficiency, due professional care, and individual objectivity including the standards concerned with the performance of their job