AFM131 Lecture Notes - Lecture 6: Certified General Accountant, Accounting Scandals, Forensic Accounting

• School: University of Waterloo
• Department: Accounting & Financial Management
• Course: AFM131
• Professor: David H A

Document Summary

Impossible to manage a business without being able to read, understand and analyze accouning reports and inancial statements (which relect a business"s health) Accouning is the recording, classifying, summarizing and interpreing of inancial events which help evaluate inancial condiion and the operaing performance. Managers and other stakeholders of a business use this informaion in order to make informed decisions. Types of inancial events reported in the accouning reports of your bike company include: value of bike sales cost of bikes sold amount of money spent on adverising and public relaions amount of income taxes net proit or loss. Financial total company, used by senior level managers and external users; reports historical results with comparaives; must be provided by all public companies; included in a company"s annual report. Compliance involves review and evaluaion of accouning records both internally and externally; required of all public corporaions; forensic accouning focuses on idenifying a company"s fraudulent aciviies.