Managements interest in the accounting system, Auditing

Managements interest in the accounting system
Management needs complete and accurate books of accounts because:

  1. There is no other way the business can be controlled;
  2. Records of debtors and creditors are indispensable;
  3. The best way to safeguard assets is to have a proper record of them;
  4. Accounts can simply be prepared when proper primary books exist;
  5. The Companies Act has specific requirements on keeping of proper books of accounts;
  6. The different acts covering NSSF, NHIF, PAYE, VAT, and LEVY need proper books.


What constitutes a sufficient system of accounting based on the circumstances? The significant thing is that the system must give for the orderly assembly of accounting information to enable accounts to be prepared. The system of accounting can’t succeed in entirely and precisely processing and recording all the transactions, except internal arrangements set up by the management termed as Internal Controls are built into the system.

Posted Date: 12/3/2012 5:13:53 AM | Location : United States







Related Discussions:- Managements interest in the accounting system, Assignment Help, Ask Question on Managements interest in the accounting system, Get Answer, Expert's Help, Managements interest in the accounting system Discussions

Write discussion on Managements interest in the accounting system
Your posts are moderated
Related Questions
Control Problems in Charities 1. Door to door collections : Volunteers should be mattered along with numbered boxes, the boxes should be sealed, and the boxes should be

e following situations involve a possible violation of the MIA ByLaws (on professional ethics, conduct and practice). For each situation, (1) decide whether or not the Code has bee

Deferred Taxation - Audit Process Deferred Taxation results from the fact such the income tax department require different rules for calculating profits from those used throug

Taxation - Audit Process Companies suffer corporation tax. The Companies Act use that corporation tax payable on the profits of any specific year should be matched against tho

Wal-Mart Locate the 2009 Form 10-K for Wal-Mart in Appendix A and consider the following questions: 1. With respect to the report of the external auditors to "the Board of Directo

Procedures When Fraud is suspected Whenever the auditor encounters situation that might indicate that there is a material mis-statement in the financial statements resultant fr

Sundry Debtors and Loans Sundry debtors and loans are not generally material assets of companies another than those companies whose business is to create loans.  We shall cons

The modern approach allows one audit of an auditable entity with one comprehensive report. One additional advantage is that this approach assists in staff development and retention

Assets held for Sale - Audit Process A non-current asset or disposal collection is classified as held for sale whether its carrying amount will be recovered principally via a

I have a auditing case study i need to complete in chapter 8 of Auditing & Assurance service (fifteenth edition) by Alvin A. Arens, Randal J. Elder and Mark S. Beasley. I don''t kn