Auditing And Accounting: April 2009

Think About Obtaining An International Business Degree

The growing international market of companies have become very competitive not only in the business world but in the international business profession as well. More and more professionals are moving towards achieving success in the ever changing and fast paced career opportunities of international jobs.

International careers are in one way or another very rewarding and lucrative, however, the challenge lies behind how one can fully vie for the jobs and prove themselves an asset to the organization they are about to join. This is the reason why most professionals advance themselves with studies and an international business degree.

An international business degree can be a valuable asset to an individual highly focused on achieving success in the career arena. Logically, a person having an international business degree will get the job in an international company rather than a person who just has a business degree. Although in the same area, business, a specialty degree in a chosen field such as international business is always an advantage over the other. In the same was that a masters degree will be more advantageous than just the degree.

Schools of business have over the years become more competitive too, offering the best studies in the line of business and international business. Producing successful degree students have been a goal to these schools and have contributed to the increasing demand of more effective and efficient professionals. Here are some of the well known schools that offer international business degrees:

University of Phoenix
This school is the largest private university in the U.S. that offer degrees in business such as bachelors, masters, and doctorate degrees in global management, technology management, information systems, accounting, finance, e-business, and administration.

Walden University
This university is accredited by the Higher Learning Commission and offers masters and bachelors degrees in management and doctoral and masters in psychology. They offer business programs that include: E-Business Entrepreneurship, MBA, Accounting, Healthcare Mgt., Management, Marketing, MIS/Tech Mgt., Human resources, and International Business.

Keiser College
This school offers associate degrees in 18-24 months and bachelors degree in as little as 41 months. Business programs included are: Bachelors in Marketing, Bachelors in HR, International Business, Human resources, Marketing, and MIS/Tech Mgt.

Argosy University
This university offers thirteen metropolitan campus locations throughout the US and offers MA, BA, PhD and post graduate certificates in the fields of Management and Marketing, Business Administration, Information Systems, leadership, Health Management, and International Business.

Florida Metropolitan University (FMU)
This university has locations throughout Florida and offers career fields in business, computers, criminal justice, design, health care, legal and management and marketing. They offer business programs such as: MBA, bachelors in Business, Associates in Business, Associates in Accounting, Accounting, Management, Marketing, and International Business.

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Autor: mter9248

Where to Get Your Online Finance Degree

An online finance degree is a wonderful option for individuals who want to go to college, but for whatever reason prefer an online forum as opposed to a traditional classroom. Frequently, those who opt for an online finance degree have busy schedules already because of family and work commitments, and juggling a typical class schedule is nearly impossible. Also, individuals who have disabilities often times opt for an online finance degree simply because it is easier to work straight from home. No matter why you want an online finance degree, there are many options out there for you to choose from.

The online finance degree is a very popular major, and because of this almost all of the online universities offer the online finance degree. In addition to this, the online finance degree is not only available in bachelors, but also in masters and in some cases PhD. So, no matter if you want just a bachelor's online finance degree or want to get an online finance degree at ever level, the choice is totally yours.

Paying for your online finance degree is not as difficult as it ahs been in the past, either, because now you can get student loans and choose different payment plans for your online finance degree. Paying for your online finance degree has never been easier.

In addition to this, you will need to decide exactly what you are looking for in the university where you will obtain your online finance degree. The reason for this is because there are so many online university options that range in popularity, accreditation and cost, that you will need to find out which ones offer the best online finance degree for your budget.

Be sure, however, before you begin studying for your online finance degree that you know your university is accredited and has many successful graduates with their online finance degree.

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Autor: fsegura

Where to Get Your Online Finance Degree

Source: Free Articles

Autor: fsegura

#77 Auditing Creditors- Creditor Turnover Analysis

In audit, it's essential to form an expectation of the Company's results before we really drill into the details. We compare the actual Company's results to our expectation, and investigate the variances accordingly. This is the analytical procedures adopted by most of the audit Company. Besides, we also compare the result / financial position with prior period.

Creditors' turnover anlaysis is one of the auditing procedure we performed. What are we expecting from the audit client, in general. We expect the creditors turnover (days) to increase, as compared to prior period.

To illustrate, majority of our audit clients are affected by the economy turmoil. They are squeezing suppliers' credit ( by delyaing the repayment), in order to maintain the Company's working capital, as our audit client's working capital are most likely affected by the delay of repayment from customers.

We have formed an expectation, and we will compare the actual result with our expectation. Any unusual movements need to be identified.

Accounting principle- Accrual Basis

Figures generated / kept in accordance to accounting principle is prepared on accrual basis. For instance, accountant record the provision for warranty ( based on estimate) even though there's no actual cash/ economic outflow yet.

In finance, cash basis figures are more relatively more valuable , as compared to accrual basis ( advocated by accounting principle), in order to value a business.

What do you think ? You prefer a an accrual method or cash method in valuing a business?

#76 Classification of Tax Refund

Should tax refund be classified as Income in financial statement?

Let's look at the double entries of tax refund upon receipt of advice / monies from the Income Tax Authority of the country:

Dr. Cash
Cr. Taxation Expense

Let's illustrate with example. Company XYZ made provision for tax in relation to Year of Assessment 2008 amouned to US$200 based on its tax computation, full payment of US$200 has been made. US$200 has been charged to its income statement as taxation expense.

In the same year/ subsequent year, Comptroller of Income Tax inform the Company that there's a computation error, and the actual tax for YA 2008 should be US$180 (ie overpaid by S$20). The Company should have recorded a credit to its taxation expense account (i.e. a gain to income statement) as tax refund.

In short, tax refund should not be classified as income in financial statement. It should be considered a credit to taxation expense account.

Small Business Accounting- Interest Expense

What are the entries to record interest expense incurred on borrowings from bank ? Upon occurrence of interest expense:

Dr. Interest Expense (P/L)
Cr. Interest Payable (B/S)

Upon repayment of interest payable to bank:

Dr. Interest Payable (B/S)
Cr. Cash (B/S)

Breach of Debt Covenant

While a Company withdrawn loans from bankers, a debt covenant condition will be stated on the term loan facility letter require the Company to maintain /meet certain financial position. For instance, the debt covenant might require the Company to maintain current ratio of at least 1, or maintain net worth ( i.e. net asset) of certain amounts.

If the Company does not meet the debt covenant requirement, the bank is contractually entitled to call back the loans immediately. To illustrate, if Company XYZ fail to meet debt covenant requirement of maintaining current ratio of 1, bank is entitled to call back the loans amount immediately.

However, in practise, the Company will negotiate with its bankers to extend the period of review ( ie. extend the timeline for the Company, in order for the Company to improve its financial positoin).

For auditing purpose, the Company must require a waiver letter from the bank as an evidence that the bank will not call back the loan immediately. If not the non-current portion of term loan has to be classified as term loan if waiver letter was not obtained after the Company has breached its debt covenant.

#75 Auditing Interest Expense

What's the most effective way of auditing interest expense recorded?

In order to verfiy the reasonableness of interest expense recorded, we used the following formula:

Principal x Average Interest Rate x Period = Interest Expense

Some of the auditor would perform vouching to bank advice by tracing the amount reflected on bank advice to amount stated on General Ledger. However, vouching only ensure the existence, it does not address completeness.

As a result, reasonableness is always useful to check for the completeness of expenses recorded.