Control Environment of an Organization Free-Sample-Myassignment

Question: Discuss in details whether or not the Accountant acted Ethically. Answer: Tehra is serving as an accountant in a footwear apparel company. The company is in profits or in simpler words we can say that the revenue and the net income are increasing 100 present over last three years. With the profit Tehra and her colleagues expected a hike in the salary which certainly did not happen .Things not going by her favour she started submitting expenditure compensations of personal acquisition. Having good relationship and acquaintance with the team leaders or the supervisors she just makes the reimbursement voucher sign , she Is doing all these as she was expecting a hike which did not happen. Tehra is wrong in her doings, she has no right to submit her personal expense as reimbursements and she certainly did not acted ethically. Expense repayment is a method for disbursing staffs back when they spend their own cash on business-related expenditures. False expenditure claims ascend when employees who are permitted to be compensated for expenses experienced while exe cution their work responsibilities, claim expenditures to which they are not permitted. It is noticed that no proper internal control were placed at the company and the supervisor was wrong in allowing the expense of the accountant. Proper internal control needs to be places In the company. Business owners or the corporations must be watchful that placing controls into the commercial system may cause disorganizations or other difficulties that compensate the likelihood of any victims. Company has no liability to raise salary to employees if the company is incurring profits, its the wish of the company to do it or not. Tehra should actually ask the management and put forward her opinion rather making false expense claim which is illegal and ethical. She should have acted wisely as she is the accountant of the company and should have taken things on a more serious note.An accountant is eligible to maintain the books of accounts and she has to be ethical enough and be confedential and maintain integrity. (Brisbane chapter, 2017). It is noticed that no proper internal control were placed at the company and the supervisor was wrong in allowing the expense of the accountant To avoid this basic controls needs to be identified such as employees should submit detailed expense compensation requirements, including original receipts and associate certification and details of the expenditure and reasons for that spending. Rahul serves as an accounting manager for the company On time Greeks which is a technical company for the individuals and small companies. As serving as a manager he is responsible to look after the accounts of the company that is the trial balance and other matters. Atrial balanceis actually the whole list of thegeneral ledgeraccounts which could be both capital and revenue which is actually contained in different ledgers.His supervisor strictly instructed him to prepare the trial balance under a restricted time. Due to some uncertain circumstance he was unable to prepare the trial balance. While preparing the trial balance in haste he discovered that the credit side exceeded by $3000 from the debit side. To make things proper he decided to add a $3000 debit to the vehicles account Balance. He then made alteration in the vehicles account and thought that this would not create a material impact in the books of accounts. Rahul is unethical in his job and he is not right in doing such mismatch. To total the debit and credit side he cant do such adjustments. It does not depend whether the amount is material or not. It is against the accounting policy of the company to do such as unethical thing . When the firm applies dual access principles appropriately, the automatically the sum of debits should match the credits.. A disparity amongst trial debit and credit sumssignifies that one or more explanations comprises errors or oversights. Bookkeepers use this period to find and correct mistakes the trial balance reveals. The sums of the debits and credits in the trial balance must tie, in order to build the new Revenue declaration and Balance sheet properly. And, the company must find and fix all bookkeeping errors that lead to the disparity before publication the period's declarations. Also, they must find and fix otherimportant and material errors fundamental the balances of account during the trial balance period, as well. Bookkeepers use this period to find and cor rect mistakes the trial balance reveals The accountant should find the error and fix the journals or the ledgers is he could detect any mistake, if the debit and credit dont match there is the possibility of an accounting error in the balances of the account, or the transaction posting from one journal to leger can be omitted or wrongly posted. And even if the doing any adjustment it should be accurate enough. References Brisbane Chapter (2017).False Employee Claims. [online] Available at: https://brisbaneacfe.org/library/occupational-fraud/false-employee-claims-payroll-fraud/ [Accessed 9th April. 2017].[1] Bizfilings(2017) Finance [online] Available at: https://www.bizfilings.com/toolkit/research-topics/finance [Accessed 9th April. 2017].[2 Control environment (2017).Control environment of a Company. [online] Available at: https://www.accaglobal.com/ie/en/student/exam-support-resources/fundamentals-exams-study-resources/f8/technical-articles/the-control-environment-of-a-company.html [Accessed 9th April. 2017].[3] Internal control(2017).Internal Controls. [online] Available at: https://f2.washington.edu/fm/fr/internal-controls [Accessed 9th April. 2017].[4]