Unknown Story
Текст Раскадровки
- The auditors solution presentation...
- #2, it is important our business does periodic account reconciliations held by other entities like banks, and credit customers to help ensure the balances add up on the balance sheet and trial balance. Speaking of trial balance, calculating it daily/weekly can provide insights into accounts and systems to discover discrepancies like this earlier.
- - Apply Internal controls!!
- As I was looking at the journal I saw one of the entries that had the prepaid expense account credited and should have been debited. This caused the assets and liabilities to be misclassified on the balance sheet. And resulted in publishing of false income statement for the business.
- For future instances, Greenwood furniture must apply internal controls. First, using standardized financial documents such as purchase/sales invoices and receipts of transactions regarding inventory will help maintain reliability over time. It will be convenient when reviewing past documents and looking for inconsistencies in various documents.
- Greenwood furnitures Solution
- The auditor's solution presentation continued...
- Lastly, the business needs to ensure GAAPs are followed. Specifically, the matching principle stating that each expense item related to revenue it help earned must be recored in same accounting period as the revenue it helped earn. This means the late invoices of furniture inventory needs to be in the period it helped earn revenue when furniture was sold.
- BUSINESS SUCCESS PLAN:-Follow GAAPS- Usage of Internal Controls
- Secondly, after I reviewed the journal entries...there have been late arriving purchase invoices from manufacturing companies that were not included in this fiscal period. It is important expenses are recorded in same period as the revenue it helped earn. This is a necessity to accurately calculate net income.
- To not repeat this issue, the business' accounting team should require specific management to fully authorize certain invoice transactions which will add more responsibility to accounting records that prove to the business that certain transaction regarding late invoices have been acknowledged by the appropriate authorities.
- Auditor back in Stanley's office for an important talk after giving success plan presentation.
- But there is one big problem that I need to discuss... I noticed that your business has private account that are not related to the business. The major redflag is that during the fiscal period small increments of money were being deposited into those accounts. Can you tell me why those accounts exist.
- Ok Stanley, hopefully your business implements these tactics to once again become profitable with the use of accurate accounting statements.
- Oh no, I totally forgot about those accounts! I created those accounts to help a friend financially as back then my business was booming so I thought I could withdraw a tiny percent of the company's profit as it wouldn't make a difference and help my friend. I am sorry. I will remove them.
Создано более 40 миллионов раскадровок.
Никаких Загрузок, Кредитной Карты и Входа в Систему не Требуется!
