General Ledger, Reporting, and Financing Flashcards
1
Q
What are the core activities?
A
- Receive transactions from other cycles
- Financing and investing- receive information about financing and investing activities
- Budgeting- receive budgets, primarily for managerial accounting reports
- Create and post adjusting entries
- Reporting (prep F/S, and managerial reports)
- Prepare compliance reports
2
Q
What are the inherent risks?
A
- lease accounting
- loan covenants
- related party transactions
- Do we have obligations that are not recorded?
- f/S Fraud (manual adjusting entries)
3
Q
List the stakeholders?
A
- Creditors
- Shareholders
- Regulators
- External auditors
4
Q
Key documents include:
A
General ledger- provides strucuture for accounting info
General journal- no routine transactions
Financial statements- Report on F/S
Managerial accounting reports
Compliance reports
Control and subsidiary accounts
Relevant controls- Accounting policies and procedures are approved, documented, and consistent with law, regulation and organizational policies
Relevant controls
5
Q
What are risks?
A
- Journal entry- Incorrect, fraudulent journal entries
- truncations that are not recorded
- Inadequate of authorization
- F/S are reliable, unreliable, not timely
