Auditing is the most popular and widely subscribed accounting service offered by professional accounting services firms such as Pwc, deloitte, Kpmg, Ernst and young (EY) to mention a few. This is because in most nations (if not all), companies listed on the stock exchange (ie public companies) are required by law to file an audited financial statement with the various regulatory bodies concerned.
[Read more…] about Types of Audit
During my stay at the financial control department of my PPA, I carried out a full reconciliation of our account. It wasn’t hard because it is something we did at our undergraduate level. Before I begin with how to carry out bank reconciliation, let’s start with the basics of what a bank reconciliation statement is. Due to the entity concept in accounting, we take the business as separate from the owner. In this respect, a business normally operates and own bank accounts which are different from the bank accounts of the owners.
[Read more…] about Bank reconciliation Statement
Internal controls in computer based accounting system are of two basic types:
1) General controls or organization controls
2) Application or procedural controls
Internal control in a computer based accounting system can be represented by the following diagram.
[Read more…] about Internal Control in an EDP system
Audit trail can also be referred to as management trail. The reason being that audit trail allows management to determine the priority of processing and to follow up on errors. Audit trail is the facility by which individual transactions can be traced through the accounting records, eg files, indexes, reports, references etc.
[Read more…] about Audit trail, loss of audit trail and the solution to it
Management and control is a critical function in organizations, lax management control systems in the past have resulted into losses on the part of investors, business failure and theft of important business information. Today, we are taking a look at causes of management problems and characteristics of good management control. Before we begin, let us start with what management control is.
[Read more…] about Management control systems
The statement of cash flows is one of the required statements that must be published in the financial statement of a company. The statement of cash flows or cash flow statement is so important, that it must be presented every year so far the income statement is also presented in the period concerned. This means that if a company chooses to ignore the preparation of the balance sheet (statement of financial position) but presents the income statement, then the statement of cash flow must be prepared.
[Read more…] about Statement of Cash flows
The income statement has many names; it may be called the statement of earnings, statement of operations or the profit and loss statement. The income statement is of utmost importance to the equity research analyst because from the statement he is able to analyze, predict future earnings and make recommendations. The Income statement is one of the required statements a company must file at the end of an accounting period, alongside two other statements which are the statement of financial position and the Statement of cashflows. [Read more…] about Income Statement
Before we begin with the topic for today, let us take a quick look at what a budget is. A budget is a quantitative expression of a plan of action prepared in advance of the period to which it relates. Budget may be departmental or functional, or even for the business as a whole. The process of preparing and agreeing budgets is a means of translating the overall objectives of the organization into detailed feasible plans of action. [Read more…] about Variance Analysis
A management control system basically seeks to gather information and use the information gathered to evaluate the performance of different organizational resources like human, physical, financial and also organization as a whole.
In designing a management control system, we ask ourselves two questions. They are: [Read more…] about Designing & Evaluating Management Control Systems
With the prevalent problem of assigning WHT to the various companies we deal with in my department. I thought it necessary to carry out a research on withholding tax in Nigeria, what percentage is collected, what it is collected on, and who collects it. Before going deep into it, let us first define what a withholding tax is. A withholding tax also called a retention tax is an advance and indirect source of taxation deducted at source from the invoice of a tax payer be it corporate bodies or individuals. [Read more…] about Withholding Tax In Nigeria
