Management and Organizational Studies 1023A/B Midterm: Chapter 5 Textbook and Lecture

• School: Western University
• Department: Management and Organizational Studies
• Course: Management and Organizational Studies 1023A/B
• Professor: Barry Hawn

Document Summary

They check to make sure something is right; that someone is following the rules, not trying to cheat. How the business is run, running the way it is supposed to. Factory that made medicine, people audit it all the time to make sure everythings perfect. Going to check to see if your following the rules. Sole purpose is making sure were following the tax rules. Financial fine if they"re not following tax system. They check to make sure something is right; that someone is following the rules, not trying. Something that applies in accounting rules that never will apply according to tax rules. Example: business spends money on meals/entertainment, put on statement as expense, only allowed to deduct half for tax purposes. This is bc they don"t want to reward a business for leisurely expenses. You can record an expense for accounting and tax, but not at the same time. They check to make sure everything is right: financial operations,