Auditing Accounts Receivable Essay Example | Topics and Well Written Essays - 500 words

Auditing Accounts Receivable - Essay Example Supporting documentation can include a receipt of purchase, check numbers, and invoices just to name a few. Such analytical procedures to verify existence assertions would be bank reconciliations and cash flow analyses. Without the documentation and analytical procedures to support financial transactions, the accuracy of the accounts receivable will not be strong and this will greatly overstate or understate each account. To correct this, the existence and rights assertions are necessary to audit each account and verify that each transaction recorded has been recorded accurately and within the specified time period. The payroll cycle is a common source of frustration for an accounting and auditing department because of the myriad errors and cases of fraud that can take place. Employees may turn in fraudulent time sheets that state they have worked more or less hours than were actually completed. Supervisors may not adequately review all time sheet data and it may be passed through the payroll cycle without ever being checked for accuracy. Furthermore, employees can sometimes create ghost employee records where payroll is paid to an employee that does not exist and costs the company thousands of dollars in unnecessary payroll expenses. Separation of duties is a common control method utilized by accounting and payroll professionals to detect payroll errors and catch fraudulent activity before it ever truly becomes an issue. For instance, companies are encourage to â€Å"have a minimum of two employees review bank statements and returned checks every month. Also, divide Payroll duties so differen t people are responsible for approving time sheets, entering hours worked data, distributing paychecks, etc.† (Bilski, 2010). Having multiple people fill specific duties throughout the payroll cycle will have an adequate set of controls in place to

21st-century Organizations Face Different Challenges From Those of The Essay

21st-century Organizations Face Different Challenges From Those of The Past - Essay Example Environmental catastrophism is a result of changes in climate. Weather patterns keep changing and sea level keeps rising whenever there are changes in climate. It is estimated that gradual changes in weather could cause 40% of world population to fall into the risk of falling victims of limited natural resources like water, pasture, energy and cultivatable land (Easterling et al, 2000, p. 2070). The poor and the less influential people will have little or no control over resources thus likely to suffer due to lack. To be able to establish their position in the society, there is a high likelihood of eruptions of violence as more people fight for a share of the limited resources. To resolve the conflicts, governments will need to have negotiation traits if peaceful coexistence will be achieved once again. South America has already started facing the negative impact of globalization and climate change since there has been an increased threat to livelihoods of the poor. For instance, during the 2008 global recession, there was a significant increase in the use of food items in exchange for crude oils (Nazlioglu & Soytas, 2011, p. 490). That together with other global related issues led poor people in the south to suffer since most households could not afford the basics like food due to the high prices at the time. The blame was placed on the Northern governments who had failed to invest in alternative drivers of the economy like agriculture. This led to malnutrition among the poor hence causing a critical humanitarian crisis at least for the next few years. It is estimated that there are more than expected countries that have been exposed to political and economic conflicts that end up affecting accessibility to basic resources (Iqbal, 2006, p. 641). Developed countries have also imposed wars aimed at victimizing the poor countries hence leading to more devastation that influences the quality of life in poor countries.