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

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