22107 Study Guide - Fixed Cost, Outsourcing, Finished Good
Document Summary
Theory component notes: growthorpe & amat (2005) - [macro+micro statement manipulation] Creative accounting, manipulation by the preparers of financial statements at a macro and micro level. Despite regulation, no practical level of monitoring and supervising body involvement can eliminate the human element of preparing financial statements. Forensic accounting is a process of translating accounting information into a progressive financial narrative, conveying real events, actions and decisions. Forensic accounting innately involves discretion as forensic accounts generally attempt to attribute financial decisions to members of an organisation. The relationship between budgetary control leading to changes in budgetary slack and finally, changes in short- term managerial orientation. Tighter budgetary controls leads to reduced budgetary slack which in terms leads to short- term inefficiency. Budgetary slack is crucial for long term managerial thinking. De- aggregating accrual components in order to provide more comprehensive, useful cash flow information. Financial statements are prepared for a range of different business entities.
