During the system analysis and system design stage, it is crucial to incorporate certain basic internal controls which are as follows: SEGREGATION OF DUTIES: Staff responsibilities must be organised to ensure that key tasks are segregated to reduce the possibility of error, fraud or the manipulation of accounting or other records. Specific responsibilities to separate … Read more
This article seeks to explain the main difference between financial accounting and management accounting or managerial accounting. DIFFERENCE NO 1: Financial accounting Management accounting Principal objectives Stewardship of business for benefit of shareholders Seek to improve economy, efficiency and effectiveness of operations As we know Financial accounting mainly focus on periodic reporting of accounting information, … Read more
This article explains: · what e-business is and the difference between e-business and e-commerce; · the different type of e-business model; and · key critical factor for e-business success. DIFFERENCE BETWEEN E-BUSINESS & E-COMMERCE E-Business: Refer to all uses of advances in information technology (IT) particularly networking and communications technology to improve the ways … Read more
Do you know that Accountants whether he or she is a Financial or Management Accountant can contribute a lot to the organization? There are many critical tasks that can be performed by the aspiring Accountants which are tabulated below: Top Ten Most Important Work Activities Performed by Accountants 1.  Accounting systems and Financial Reporting 2.   Long-Term … Read more
In the earlier article, we understand that data is merely raw materials, it needs to be converted ( collected, processed, classified ,etc) into useful/meaningful facts so as to enable Management to made decisions. So what are the criteria of being consider as USEFUL information? CHARACTERISTIC OF USEFUL INFORMATION Relevant Information is relevant if it reduces … Read more
Difference Between Data And Information Data Data refers to any an all of the facts that are collected, stored, and processed by an information system. For any activity, normally three kinds of data need to be collected: facts about the event itself, resources affected by that event and the agents who participated in … Read more
MAIN TOPIC ON CONTROLS AND AUDIT OF ACCOUNTING INFORMATION SYSTEMS An Overview Of Internal Control. Internal Control And Control Framework Within An Organization. Internal Control For IT ( Part 1) Internal Control For IT ( Part 2) Control For Revenue Cycle Internal Control For Expenditure Cycle Internal Control For Manufacturing Internal Control For General Accounting. … Read more
As accounting has it primary objective of providing information useful to decision makers, the understanding of the role play by Accounting Information Systems is critical to many accountants. It’s important to understand how the accounting systems work: how to collect data about an organization’s activities and transactions; how to transform that data into information that … Read more
In the earlier article, much attention has been drawn on Prime Costs. This article deals with what are factory overheads, how to treat Work-in-Progress in the Manufacturing Account and finally showed a simple format of the Manufacturing and Trading Account of a manufacturing that buy goods from suppliers for resale and also … Read more
An enterprise can buy goods from others for resale and or it can manufacture its own goods for resale. When the enterprise manufactures its own goods, it keeps such records that will disclose his TOTAL COST OF MANUFACTURE/PRODUCTION. At the end of an accounting period, a Manufacturing Account is drawn up to ascertain the … Read more