COMMERCE 4AD3 Chapter Notes - Chapter 14: Stock Certificate, Control Flow, Financial Plan
11 Dec 2017
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Document Summary
Accounts involve share capital, dividends, long term debt, interest expense, tax expense and future income taxes, financial instruments, derivatives, equity method investments, related gains and losses, consolidated subsidiaries, goodwill and other intangibles. Transactions in theses accounts are generally controlled by senior officials. So internal control is centred on the integrity and accounting knowledge of senior officials. Finance and investment process involves the client company"s legal structure, how it raises capital from shareholders and creditors, its intercorporate investments and related parties. Understanding important aspects of corporate structure requires input of the most experienced audit team members. Disclosure requirements of related accounts are extensive and often complicated. Recent events and fraud have highlighted the risks involved in reporting for the finance and investment process. Financial planning and raising capital (selling shares or borrowing money) Interacting with purchases, payables and payment process to purchase resources such as inventory, expenses, fixed assets.
