Category: Accounting

Public financial Management Public officials play a critical role in budget allocations. The main aim of a public official is to allocate available funds in a manner such that the general public receives the greatest benefits from the application of the funds. The public sector must ensure that scarce resources are allocated in a manner that optimizes their usefulness. It is imperative for public officials to take into consideration the preferences of the local citizens while making budget allocation decisions. In order for growth to be achieved at the local city levels, fiscal resources must be managed in a prudent manner so as to support market-led growth. Budget allocation plans should satisfy three key elements: responsiveness, responsibility, and accountability. Responsiveness of budgets relates to the level in which the allocation of budgets matches the publics’ expectations. Responsibility is achieved when budget allocation is conducted in an efficient and equitable manner, with minimal risks being involved. Accountability relates to the level in...

Financial Analysis for Major Medical Center Case Study Public Financial Management Introduction The paper examines the auditor’s opinion letter for Major Medical Center and Hospital Support, Inc. The report of the independent auditors seeks to instill confident on the various stakeholders. This paper also analyzes the financial statements and review notes and any concerns. Lastly, the paper will evaluate the financial statement of Major Medical Center and Hospital Support, Inc. Auditor’s Opinion Letter Auditing is an independent examination that is used to test the precision and completeness of information presented in a firm’s financial statement. The test enables the independent auditor or Certified Public Accountant (CPA) to give an opinion. According to Finkler, Steven A. et al. (2012), the opinion should check on whether the corporation financial statements denote its true pecuniary position and whether it has complied with the Generally Accepted Accounting Principles. The aim of auditing is to ensure that it offers an assurance to stakeholders on the true and fair view of...

Introduction FIFO is an abbreviation of First In, First Out. It is an asset-management and assessment method that recommends using, disposing or selling of those assets that are acquired or produced first while retaining those bought last. It is can be used by a person or corporation. On the other hand, LIFO is an acronym of Last In, First Out (Finkler, S. A. et al. 2013). It is an asset-management and valuation technique that recommends using, disposing or selling of those assets that are acquired or produced last while retaining those bought first. It is can be used by a person or corporation. This paper examines the advantages and disadvantages of FIFO and LIFO inventory methods and evaluates the best inventory method for this scenario. Advantages of using FIFO for Inventory Management Reduce Outdated Inventory – the outdated inventory refers to the inventory that is obsolete and outdated. Thus, the inventory is not appropriate for sale or use in creation. Numerous businesses necessitate...

Explain the meaning of the variances Introduction Variance is the dissimilarity between a planned, budgeted, or standard cost and the definite amount incurred. The computed variance can stand for both revenue and costs. The variance aid the company in comparing their planned and the actual outcomes and the effect of the two on the performance of the firm. Further, the variance can result to either favorable or adverse variance. A favorable variance is attained when the actual performance is enhanced than projected results. An adverse/unfavorable variance occurs when the actual results are worse than the estimated results. This paper will explain the meaning of price, volume, and mix variances. The paper will consider revenues and how things turn out for the group considering aspects such as profit. Price Variance It is the dissimilarity between the real price that is paid by an enterprise to acquire an item and its average price, the difference is multiplied by the number of units acquired. If the result...

Explain your Budget to the County Council PPA602 – Public Financial Management                Introduction Capital budgeting concerns the investment of funds with expectation that it generates extra remunerations or cash-flows in the future. It entails the maximization of the limited incomes to the best investment prospect that is accessible. Further, the investments of current funds focus on long-term assets. Examples of capital budgeting decisions include acquisition of another enterprise, expansion of prevailing business, replacement and transformation of assets, research and expansion programs, and the purchase of novel long-term assets. In this case, the capital budget includes acquisition of two garbage trucks, a bulldozer, three new lawn mowers, and building an activity center. Steps and Processes in Capital budgeting The venture will start with an idea that develops to reality. Secondly, River County should develop the ideas from the top management but should consider the notions of the lower management (Mielcarz, P. et al. 2014). Thirdly, the experts should appraise...

ACC 578-Financial Statement Fraud Financials statement fraud is one of the most common forms of fraud that occur in companies. Financial statement fraud involves careful manipulation of the accounting system with an aim of making the financial status of the company appear healthy to investors and the shareholders. Some form of financial statement frauds perpetrated in the past include disguising loans as sales revenue, concealing losses, deliberate omission of financial figures and/or transactions, falsification of figures, lack of adherence to accounting principles, and other forms of frauds. The Sarbanes Oxley Act of 2002 was introduced to deter companies from fraudulent reporting of financial figures. The Act, however, may not be able to deter acts of fraud where the management is involved in perpetrating such cases. This paper will assess two fraud cases related to financial statement fraud, specifically the Satyam Scandal of 2009 and the American International Group fraud which occurred in 2005.             Satyam Computer Services was an Indian-based company with...

Elements of an effective fraud policy Fraud can be generally be defined as use of deception with the intent of making personal gains or causing loss to another person or an organization. There are many types of fraud such as those committed by employees against employers, businesses against customers and investors and other forms of fraud. In order to curb cases of fraud, businesses must come up with appropriate fraud policies. This letter will give in detail the elements of an effective fraud policy. Policy statement             According to Dawson (2015), an effective fraud policy should have a policy statement. A policy statement outlines the core responsibility of the management to prevent or detect cases of fraud in the organization. The management should be aware of the types of fraud which are likely to occur within their organizations and implement appropriate measures for prevention and detection. The management cannot delegate this task to outside parties since it is an integral part of the...

Fraud Prevention and Detection Policy-ACC 578 Elements of an effective fraud policy Fraud can be generally be defined as use of deception with the intent of making personal gains or causing loss to another person or an organization. There are many types of fraud such as those committed by employees against employers, businesses against customers and investors and other forms of fraud. In order to curb cases of fraud, businesses must come up with appropriate fraud policies. This letter will give in detail the elements of an effective fraud policy. Policy statement According to Dawson (2015), an effective fraud policy should have a policy statement. A policy statement outlines the core responsibility of the management to prevent or detect cases of fraud in the organization. The management should be aware of the types of fraud which are likely to occur within their organizations and implement appropriate measures for prevention and detection. The management cannot delegate this task to outside parties since it is an...

Successful AIS Implementation  Identify three to five (3-4) factors that contributed to the accounting information system failure within the business that you have identified. Indicate the impact to the business. Provide support for your rationale. Avon is an outstanding international beauty company that was founded over 100 years ago and has over 6 million sales representatives. The organizations require a system that fits well with the evolving changes in the beauty world. The accounting information system doesn’t include much utilization of the machines; the machines are just devices in the system. They are not the key drivers during the whole process (Bucker & International Business Machines Cooperation, 2009). The accounting system may be traditional or not genuinely agreeable with the administration system, which may cause system disappointments, as these administrative plans are concentrated around the total disappointments of different firms. Example is Enron and other organizations. The mechanized accounting systems are more valued than the manual accounting systems and the organization may embrace...