ACCT 601 week 4 literature review Financial Accounting and Reporting Literature Review

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Financial Accounting and Reporting Literature Review

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Financial Accounting and Reporting Literature Review

Financial accounting and reporting is of great importance and companies focus on this more and how it is done since it forms the basis of many financial decisions and investment. For this reason investors have opted to major on the factual information and scrutiny of what is presented to them to detect and prevent fraud at its early stages if any and lead to making wise decisions in the form of hiring of new management in the day to day running of the company. This has even lead to complete reconsideration of investment in totality by these investors. Due to this fact and many more, scholars have chosen to research and provide their finding on this topic and most have provided desirable solutions but not short of shortcomings and challenges in their implementation in one form of another as they will be discussed in detail in this literature review.

Adding Value as a Management Accountant – Business Partnering. (n.d.). Retrieved January 8, 2018, from http://linkup.imanet.org/blogs/abraham-kulangara/2014/08/25/adding-value-as-a-management-accountant-business-partnering?ssopc=1

Abraham Kalungara puts his focus on the timely and accuracy presentation of financial reports by the accountants and managers. As much as I agree with this, I think there is more to financial reporting that just time. Financial information should involve all stakeholders so that everyone can achieve a consensus and understand why everything is as it is. I believe this model in addition to the ideas he postulates will give a better and a more modern view on accountability in financial systems and their reporting. Accuracy is a collective responsibility rather than an individual managerial responsibility.

Mock, J. M. (2004). Classic Case Studies in Accounting Fraud (Rep.). https://etd.ohiolink.edu/!etd.send_file%3Faccession%3Dmuhonors1111004894%26disposition%3Dinline

This resource gives a major focus on fraud and gives ca studies with the implications and end result of fraud. It aims at making people easily detect and stop fraud. It can also aid users to avoid and close loopholes that might provide a leeway for fraud through the case studies. I personally believe this is a good way of detecting and preventing fraud in companies and organizations. Employees should be aware of how to detect fraud by using real life cases and how they were solved. This makes it a great resource

What Is the Importance of a Company’s Financial Statements? (n.d.). Retrieved January8, 2018, from http://smallbusiness.chron.com/importance-companys-financial-statements-21332.html

This resource exemplifies the importance of relying on a company’s financial records in the running and day to day operation and also the investors. It tries to convince people to rely on financial records that are with the company. This is not limited to investors and other interested parties in the organization. I am personally nor against the use of such financial information in the way it is put but I think relying accurate information is better than just relying on any information out there. Any data must first be scrutinized for accuracy purpose then used wherever needed. If just used the way it is presented, inaccuracies and false information might be used in running the company. Sooner or later, the company will fall because inaccurate information was used in making decisions that had negative impact on the company due to misinformation. I would go for more scrutiny and verification before submission of this.

What Is the Value of Accounting Functions in an Organization? (n.d.). Retrieved January 08, 2018, from http://smallbusiness.chron.com/value-accounting-functions-organization-24616.html

Daphne gives the value of accounting and its functions in a business. He goes ahead to give the various branches which includes managerial, financial and even includes the tax. Their functions and responsibilities are clearly spelt out in the document. In the summary section, Adams gives the values contained in the various branches of accounting which includes planning, communicating, controlling, and profit determination.

I personally believe this kind of categorization is important since it gives the various functions and expectations of each department. This will ensure accountability and transparency though out financial accounting and reporting.

Young, H. D. (2016, June 20). Where Financial Reporting Still Falls Short. Retrieved January 08, 2018, from https://hbr.org/2016/07/where-financial-reporting-still-falls-short

Sherman and Young focuses on the type of mistakes that can occur in a financial statement. The article is very important in shading light on how unintended (mistake) and intentional (Fraud) and how they can be identified and rectified accordingly. The types of errors in here are Error of omission, error of commission and error of principle. Error of omission is the transaction that is not recorded. Error s commission is an transaction that is recorded incorrectly. Error of principle is a transaction that is not in accordance with Generally Accepted Accounting Principles (GAAPs). This resource is of great importance when discussing the errors that might occur in accounting books and the various ways to record them using trial balance etc and even referring them to ledger books. It improves accuracy in Financial accounting reporting and will go a long way in




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