Accounting policy efficiency and reliability Target Corporation’s accounting policy is both efficient and reliable. However, in relation to the ratios discussed earlier, the use of estimates accounting policy is one that may require additional attention. This policy requires management to make estimates and assumptions affecting reporting amounts in the consolidated financial statements which can link to the payout ratio, the return on assets ratio (ROA), and also the earnings per share ratio (EPS). By comparing the estimates, management makes in comparison to the actual numbers presented in the statement, it would support us to make reflections on numbers that look unusual. All three ratios connect to the assertion accuracy since their amount
a) Accounting policies and comparison with international accounting standards: Net sales, cost of sales, gross margin, expense, operating income, interest income, taxes, cash, assets, long-term and short-term liabilities, Properties, common stock dividends, total shareholder’s equity are all the accounting policies. All of those and other financial data be used in preparing the Macy’s financial reports. In the section of the common stock. The company’s Board of Directors has the discretion of the declaration and payment of future dividends.
Edmonds, T. P., Tsay, B., & Olds, P. R. (2011). Fundamental managerial accounting concepts (6th ed.). New York, NY: McGraw-Hill
The Sarbanes-Oxley (SOX), Health Insurance Portability and Accountability Act (HIPAA) and Gramm-Leach-Bliley (GLBA) acts all revolve around safeguarding or guaranteeing that information is truthful. While each act is protecting data in separate fields there are some very clear similarities. SOX requires companies to provide accurate accounting and requires a framework that can generate financial reports that are readily verifiable with traceable source data. There are three key provisions. Section 302 makes officers responsible for the accuracy of financial statements and the strength of their procedures for financial accounting.
ACC601: Capstone Week 2: Current Issues Paper Individual Assignment By: Adriana Alonso May 14th, 2017 Financial Accounting Standards Board Introduction The FASB is the independent institution that was established in 1973. It is a private sector not for profit-organization, based in Norwalk, Connecticut, that establishes financial accounting and reporting standards for public and private companies and not-for-profit organizations that follow Generally Accepted Accounting Principles (GAAP).
On the other hand, financial auditing serves as a crucial business practice which provides solutions to ensure financial activities and information, including financial statements, adhere to professional standards such as GAAP. Interestingly, financial auditors could oversee IT auditors to generate audit reports for internal business purposes. This collaboration between the two teams contributes to enhancing organizational processes and facilitating the achievement of the company's goals and objectives. This newfound knowledge has expanded my understanding as well. Initially, I perceived IT audit and financial audit as parallel disciplines with little collaboration or intersection.
Introduction According to the Sarbanes-Oxley Act of 2002, the action requires that auditors report on the internal controls and financial statements of a publicly traded company. It will be the purpose of this report to provide a product that explains in detail how the audit of Bullseye company will be conducted. Furthermore, this report will also establish how the effectiveness of the managers of Bullseye will be tested based on how well they sustained internal control over the given period (Pany, 2019).
SOX and Small Businesses Since the inception of the Sarbanes-Oxley Act of 2002 (SOX), publicly traded companies have had the burden of meeting the requirements of the act. Small businesses are the backbone of the U.S. and provides the majority of job growth for the country. The requirements of SOX have placed a significant financial burden on all public companies. There are advantages and disadvantages in almost everything, however, for small businesses SOX has affected them the most.
Financial Statement Analysis (FINC225 -1701A -05) Instructor: Christopher Nguyen Unit 5: Ethics and the SEC Amanda Kranning February 3, 2017 What is the SEC? Created in 1934 by way of the Securities Exchange Act, The U. S. Securities and Exchange Commission or SEC for short is an entity that protects investors.
The AICPA Code of Professional Conduct states certain principles that accountants should abide by that are relevant in this situation. Integrity (ET Section 54 - Article III) – “Integrity is an element of character fundamental to professional recognition. It is the quality from which the public trust derives and the benchmark against which a member must ultimately test all decisions.” I would be violating this principle by not using integrity and listening to the CFO. Integrity involves doing what is right at all times, even when you are not under observation.
Student Name : Mohamed Hassan Ismail Student ID : 1451510688 course : b292 Instructions: Use the annual report to answer the following questions: 1- Is Nidec’s Annual Report primarily a financial accounting document or a managerial accounting document? What evidence supports your conclusion? The annual report of Nidec company is mostly financial accounting document because it has financial statements and financial information .
Decades of corporate greed, personal misconduct with risk taking eroded trust in corporate decision-making has resulted in the lack of confidence by stakeholders in American corporations. Restoring trust requires that the board of directors comply with requirements for greater accountability and transparency. Directors are legally bound, as stated by the Delaware Supreme Court, as fiduciaries are owing duties of care and loyalty, due care, and good faith the stakeholders and the wider society. Recent case law affirms that the duty of loyalty requires boards to act in good faith. The Sarbanes- Oxley Act and the Dodd–Frank Act require that directors protect the interests of the company and its stockholders, and refrain from risky decisions
Chapter Problems Kia Kelly BA510 Accounting November 24, 2015 Curtis Crocker Chapter Problems Problem 5-17 Fixed cost =$480,000 Contribution margin= $8.00 Break even unit sales= Fixed expenses/ Unite Contribution Margin $480,000÷$8.00=$60,000 units 2(a) Year 1 Year 2 Year 3 Direct Material 25 25 25 Direct Labor 16 16 16 Variable Manufacturing overhead 5 5 5 Variable costing unit product cost 46 46 46 2 (b) Year 1 Year 2 Year 3 Sales $3,360,000 $2,800,000 $3,640,000 Variable Expenses Variable cost of goods sold ($46 per unit) 2,760,000 2,300,000 2,990,000 Variable selling and Administrative ($2 per unit) 120,000 100,000 130,000 Total Variable expenses 2,880,000 2,400,000 3,120,000 Contribution Margin 480,000 400,000 520,000
Introduction After the fall of Enron and WorldCom, investors’ confidence and trust in the market was at an all time low. In response, Congress passed the Sarbanes-Oxley Act to help regulate and provide guidance over internal controls and financial reporting. With the implementation of SOX was section 404, which requires external auditors to assess company’s internal controls and management to sign all financial statements. Internal controls are specific procedures and “measures adopted within an organization to safeguard assets, enhance the reliability of accounting records, increase efficiency of operations, and ensure compliance with laws and regulations” (Weygandt, Kimmel, & Kieso, 2013 p.377). The system of internal controls consists of five components; A control environment, risk assessment, control activities, information and communication, and
According to Averkamp (2016), “accounting is the recording of financial transactions plus storing, sorting, retrieving, summarizing, and presenting information in various reports and analyses”. Therefore knowing how to carry out these tasks
