Tuesday, November 30, 2010
Monday, November 29, 2010
In 2001 Turmeric Business Plans have sold over 43,000 plans in the UK and worldwide. These plans and our consulting service are guaranteed to get you band finance or we refund your purchase. So whether you download a sample business plan or get us to write a business plan for your start up business you can be rest assured that you have the best resources to hand.Once your purchase has been confirmed you"ll get access to your own personal download page where you can view or download your product to your computer. Our plans are written in Microsoft Word and the financial forecasts in Microsoft Excel which are easy programs to use.You'll get unlimited access to your business plan and other related business tools for a whole 12 months for one the financial forecasts in Microsoft Excel which are easy programs to use.
Sunday, November 28, 2010
There are several common forms of business:Sole proprietorship: It is a business for profit owned by one person. the owner may operate on his or her own or may employ others. The owner of the business has unlimited liability for the debts incurred by the business.
Partnership: A form of for profit business owned by two or more people. In partnership business each partner has unlimited liability for the debts incurred by the business.
Cooperative: Often referred to as a "co-op", a cooperative is a limited liability entity that can be organized for profit or not for profit.Cooperatives are typically classified as either consumer cooperatives or worker cooperatives. Cooperatives are fundamental to the ideology of economic democracy.
Saturday, November 20, 2010
In finance, cash basis figures are more relatively more valuable , as compared to accrual basis ( advocated by accounting principle), in order to value a business.
What do you think ? You prefer a an accrual method or cash method in valuing a business?
Creditors' turnover anlaysis is one of the auditing procedure we performed. What are we expecting from the audit client, in general. We expect the creditors turnover (days) to increase, as compared to prior period.
To illustrate, majority of our audit clients are affected by the economy turmoil. They are squeezing suppliers' credit ( by delyaing the repayment), in order to maintain the Company's working capital, as our audit client's working capital are most likely affected by the delay of repayment from customers.
We have formed an expectation, and we will compare the actual result with our expectation. Any unusual movements need to be identified.
Budget has incorporated management's forecast, estimation and outlook of the business in the coming times.
Is management's budget useful to auditor?
The answer is yes. Budget, which represents management's expectation, should be compared against the actual results. Significant variances should be investigated. Apparently, management would have to explain the variances. It's important for auditor to find out the reason of the variances to identify potential changes in business operation, significant developments during the year.
Understanding how management view the business (by looking at the budget) is a crucial stage in audit planning, it enhance our knowledge and understanding on the business, the industry and the overall economy as a whole.
Capital-intensive require heavy investment of resources, including, but not limimted to: cash, human resource,management's effort, etc. As part of the restructuring exercise to scale down, there are evidence that a lot of corporate are disposing off capital-intensive business.
How would disposing capital-intensive business benefit the corporate?
- immediate liquidity ( i.e. proceeds from disposal)
- better working capital management
- allow management to evaluate other business opportunities
- lesser resources are required, which allow the business to scale down
- higher return on asset ("ROA") ratio
However, it's always not easy to dispose off a capital-intensive business unit/ busines during this business environment, unless a substantial discount is given to the potential buyers.
" How should penalty on late repayment for tax been accounted for?"
Should it be a tax expense? Should it be other expenses?
To clarify: penalty imposed by inland revenue authority on late repayment for tax should not be accounted for as tax expense; it should be accounted for as administrative expense/ other expense.
To illustrate, Company ABC entered into Sales & Purchase agreement with 3rd party to dispose one of its property. The Sales & Purchase agreement may take months to complete. In this instance, Company ABC re-classified the property from Property, Plant & Equipment to Asset held for Sale upon entering the Sales & Purchase agreement.
Asset held for sale is de-recognised from the balance sheet upon the completion of the Sales & Purchase agreement.
In normal business circumstances, suppliers will send their monthly Statement of Account to their customers to inform the customers in relation to the outstanding balances. Hence, our audit client will , most likely, receive statement of account from the suppliers.
As part of audit procedure, we can check the suppliers' statement (received by our audit customers) against the creditors' balance recorded in their book. Discrepancies need to be investigated. Statement of account served as an external confirmation to check if our audit client's book has been prepared properly.
However, there are suppliers who do not have practices of sending out Statement of Account to their customers. In this instance, we can send external audit confirmation to the suppliers to confirm outstanding balances.
Auditors may consider test the internal controls of the client's cash process. For this entry, we will provide an overview of the possible audit procedures to test the internal controls in cash payment process:
(a) select certain number of random samples, and test that payment voucher are properly prepared and authorised
(b) select certain number of random samples, and test that bank reconciliations are properly prepared and reviewed
(c) select certain number of random samples, and test that journal entries are properly posted into General Ledger
(d) select certain number of random samples, and test that payment voucher details match with the corresponding payment details
Thursday, November 11, 2010
o Previous experience in accounting or auditing, such as experience gained in summer or part-time internship programs, will help your chances of getting an accounting job.
o Knowledge of computers and financial software applications will make you a stronger candidate for an accounting job.
o be proficient in math and you must have excellent analytical skills
o communicate effectively
o be good at working with people
o have basic accounting knowledge
o be familiar with accounting software
o American Institute of Certified Public Accountants
o National Association of State Boards of Accountancy
o Institute of Management Accountants
o Accreditation Council for Accountancy and Taxation
o The Institute of Internal Auditors
o Association of Government Accountants