Another Information Security Breach

 Anyone holding such information on the internet should be required to have their systems independently tested on an annual basis. Many company's have audits of their financial records and internal controls. Why not audit the security controls of their network?

HIPAA: just something to read more about

 Haven't really delved into this at all. Came across this article at the link below. Other than the form which I kind of gloss over at any new doctors office. I really don't know much about HIPAA. The author at the link below has a link to some more documentation on HIPAA. Just posting this as one of those things I'd like to read more on when I get a chance (Sarbanes-Oxley is another one).

#22- Search for Unrecorded Liabilities

How do we ensure that the Company has accounted for the expenses incurred before year end? ANd it should be recorded in the appropriate period if the expenses has not been billed by the suppliers?

1. Look through unpaid invoices - look at the description of the services provided, and invoices date, Delivery Order date

2. Look at payment voucher after year end to find out the expenses that should be recorded in prior period, if any

3. Sent confirmation to suppliers to confirm the amount outstanding as at year end

4. Look at the expenses account, for potential indication of services which should be accrued in current year Profit & Loss

5. Perform cut off test.

Operating Lease vs. Capital Lease

Good article on Bnet identifying the differences between an operating lease and a capital lease. Includes accounting for each type of lease.

Accounting Basics: Public Accounting vs. Private Accounting

 Next in my Accounting Basics Series: Public Accounting vs Private (Industrial) Accounting.

The old accounting text book defines public accounting as: offering accounting and related services for a fee to companies, other organizations and the general public. The other services can include auditing, tax services and consulting. The certification offered for this type of accountancy is a Certified Public Accountant. The exam is prepared and administered by the American Institute of Certified Public Accountants (AICPA).

Private (or industrial accounting) is the opposite. Instead of providing services to many clients, a private accountant provides services to a single business. In a business consisting of many accountants, the 'head accountant is typically called the controller. Private accountants may or may not be CPA's. The National Association of Accountants does offer a certificate for private accountants called a Certificate in Management Accounting (CMA). Private accountants are often much more specialized and have to adapt to the needs of their company (controlling costs, budgeting, accounting systems, etc.)