the Fraud
The company’s management failed to maintain a system of internal controls to ensure reliable and accurate financial reporting. Ideally, after financial transactions are obtained aptly, they must be scrutinized for precision (Young, 2013). The cash receipts, cash disbursements, and job cost reports all must be revised to ascertain the accuracy of the quantities that the paperwork provides. If incorrect figures are forwarded into the Accounting Information System, accounts reconciliation should be done to detect errors in the financial transactions.
While financial transactions may satisfy the accounting needs of validity, precision, and timeliness, some companies like Tesco engage in fraud… Continue Reading...
complaints by employees, the procedures below have been created;
i. the retention, receipt and handling of complaints about accounting, internal controls on accounting or auditing issues, also known as "Accounting Matters", and any other issue within the Code;
ii. the undisclosed, anonymous presentation by employees regarding concerns about suspicious auditing or accounting issues or any other issue stated in the Code.
The Company shall not demote, dismiss, threaten, suspend, discriminate against or harass an employee within the terms of employment as a result of a lawful action by the employee with regard to reporting a complaint in good faith about auditing issues or any issue in the Code or… Continue Reading...
policy formulation and implementation, strategic planning, and other administrative controls. Internal controls should be exercised not give room for fraudulent activities. Boards should ensure the organization abides to the contractual and legal conditions provided by donors. Performing and reporting on financial audits facilitate organizational accountability.
Fund accountancy
The approach in fund accounting is to keep records of resources that donors, governing boards, legal entities or granting agencies provide limited ways in which the funds are used. Every fund has inherent balancing of the liabilities, revenue, expense account, and assets. Net assets and the fund balances are classified as unrestricted, permanently… Continue Reading...
determine if companies do adhere to these changes. The SEC does not have effective internal controls in place to ensure that it can monitor and identify compliance. SEC systems are not routinely patched making them vulnerable to external attacks. Audit trail of systems is lacking, which makes it hard to determine or follow-up in case of an issue. SEC systems are not using encryption for sensitive information. This makes it easy for an intruder to steal the information.
What are the merits of zero-based budgets (ZBB) compared with incremental methods?
Zero-based budgeting is a budgeting method that requires the current year's budget be prepared… Continue Reading...
