Principles of Accounting

Principles of Accounting

Auditing

Both the International Accounting Standards Board (IASB) and the Financial Accounting Standards Board (FASB) in the United States highlight the importance of “reliability” as a primary qualitative characteristic necessary to make accounting information useful to users making economic judgments and decisions. Reliability in this context refers to a quality of financial reporting that makes it a verifiable, faithful representation of transactions and events that have occurred within an organization.

Merchandising activities are designed to maintain the face of a brand in the battle for space in the retailing sector. Merchandising visits provide the opportunity to monitor shelf space and out of stock scenarios, implement point of sale, collect information, train sales staff and obtain orders. Merchandising ensures that your brand stands out from its competitors and is effectively communicating with the consumer to stimulate purchase

The legal requirement for a joint-stock company to have its balance sheet and profit-and-loss account (the financial statements) and underlying accounting system and records examined by a qualified auditor, so as to enable an opinion to be formed as to whether such financial statements show a true and fair view of the company's state of affairs and that they comply with the relevant statutes. Auditing involves inspecting documentary evidence of transactions such as invoices, statements and delivery notes to ensure that the double-entry accounting entries are complete and authentic (CALCPA, 2010).

Where the auditor is satisfied that the financial statements show a 'true and fair view' he will report this to the shareholders in the annual report and accounts. Internal audits of accounting procedures, marketing activities, production operations, quality control systems, and safety may be undertaken to monitor and review the efficiency and effectiveness with which these various activities are undertaken. In addition, a company may undertake a value-for-money audit, to evaluate whether the organization ...