Ms 04 Solved Assignment 2012 Gmc

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1. Take an organization of your choice & find out how the Accounting Reports are prepared by them and how these reports are useful for managers while making decisions relating to the activities of a Business.

Accounting

 has been defined as "-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------, and other obligations to sales revenue and owners' equity. An understanding of the financial data contained in accounting documents, then, is regarded as essential to reaching an accurate  picture of a business's true financial well-being. Armed with such knowledge, businesses can make appropriate financial and strategic decisions about their future; conversely, ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- reflected in the words of the American Institute of Certified Public Accountants (AICPA), which defined accounting as a "service activity."

The organization I am referring here is MSA Safety Company. Which deals in providing safety products. I am here going to discuss followed by MSA Safety company for preparing Accounting reports.

Objective of an Accounts Preparation Engagement

The objective of -------------------------------------------------------------------------------------- expertise (as opposed to auditing expertise) to collect, classify and summarise financial information.

This ordinarily entails reducing -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------. However, users of the compiled financial information derive some  benefit as a result of the chartered accountants' involvement because the service has been performed with professional competence and due care.

General Principles of an Accounts Preparation Engagement

1. The chartered ------------------------------------------------------------------------------ Code of Ethics. 2. Ethical principles governing ----------------------------------------------- of engagement are:

(a) Integrity-

 A professional accountant --------------------------------------------------------------------------- relationships.

(b) Objectivity-

 A professional --------------------------------------------------------------------------------------------------- to override  professional or business judgements.

(c) Professional Competence and Due Care-

 A -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------n and techniques. A professional accountant should act diligently and in accordance with applicable technical and professional standards when providing professional services.

(d) Confidentiality-

 A professional ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- a legal or professional right or duty to disclose. Confidential information acquired as a result of professional and business relationships should not be used for the personal advantage of the professional accountant or third  parties.

(e) Professional Behaviour-

 A ------------------------------------------------------------------------------------------------- and should avoid any action that discredits the profession. 3. Independence in the strict sense ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- (Scotland) Regulations 2006, they must be independent of the charity. In such circumstances, the chartered accountants must satisfy the independence requirements of sections 280 and 290 of the ICAS Code of Ethics. 4. There are certain factors which threaten objectivity in any professional role. These are: (a) Family, other ----------------------------------------------------------------------, owners or employees; (b) Loans or guarantees ---------------------------------------------------------------------------------- (including outstanding fees); (c) Beneficial ------------------------------------------------------------------------- of the client entity;

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