Wags n Whiskers



Wags n Whiskers

Ethical Concerns and Charts of Accounts

A chart of accounts (COA) is fundamentally codes set for the reliable organization of financial information. It is obligatory upon all companies to address all ethical concerns related to reporting of financial accounts. It is binding upon Wags n Whiskers to fulfil all external financial reporting requirements like tax and statutory reporting. Chart of accounts should be formed in a way that presents full trial balance of the company. There often arise conflicts that one statement of accounts for instance income statement does not required much information but on the other hand, balance required relatively more data. Ethics of accounting will require it to produce reliable information about its accounts to the maximum extent (Tracy, 2008).

Internal Controls

Internal control is the procedure intended to make sure consistent financial reporting, successful and efficient operations, and conformity with related laws and regulations. Protecting assets against unauthorized use and theft, acquisition/ disposal of assets is also included in internal control (Freedman, 2007).

Control Environment

The management approach and control policies resolve the control environment. An effectual control environment facilitates making sure those policies and procedures are duly implemented followed. The control environment also consists of autonomous oversight offered by a board of directors and audit committee; ethical values, management's integrity, and philosophy, a clear organizational structure with experienced and responsible employees; and the delegations and authority (Freedman, 2007).

Control Activities

Control activities are the explicit policies and procedures organization utilizes to attain its goals. The most central control activities entail appropriate authorization of transactions and activities, segregation of duties, physical power over assets, appropriate maintenance of documents and records, and a system of check and balances (Freedman, 2007).

Segregation of Duties

Segregation of Duties involves those different employees be delegated responsibility for diverse elements of interlinked tasks, mainly those involving sanction, safekeeping, or recordkeeping. For instance, the same employee who is accountable for recordkeeping of an asset should not be in charge for asset's physical control. Having diverse employees execute these functions produces a ideal system of checks and balances.

Proper authorization

Proper authorization of activities and transactions assists to ensure that all the activities of company hold fast to established course of actions except in charge managers authorize adoption of different course of action. For instance, a predetermined price list may give out as an official approval of price for a large sales staff. Additionally, there may be a command to permit a sales manager to approve rational divergences from the price list.

Adequate Documents and Records

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Physical control

Physical control aover aassets aand arecords ahelps aprotect athe acompany's aassets. aThese acontrol aactivities amay ainclude aelectronic aor amechanical acontrols a(such aas aa asafe, aemployee aID acards, afences, acash aregisters, afireproof afiles, aand alocks) aor acomputer-related ...