Auditing has many definition, but in the business and accounting terminology it is called Financial Auditing. A financial auditing is an accounting process. Independent bodies called the auditors are used to examine an entities financial transactions and financial statements. Its major purpose is to accurately account a company’s financial transaction. The process is being made to ensure that the entity is trading fairly and in accordance with the Accounting Standards so as their issued financial statements will not be misleading for users.
Sen. Manny Villar who is also an accountant has filed a resolution addressing a shortage of accountants in the Philippines. According to Resolution 224 the shortage of accountants in the Philippines is due to citing reports that Philippine CPAs are leaving the country in droves to work abroad.
Below is a copy of Resolution 224
FIFTEENTH CONGRESS OF THE REPUBLIC OF THE PHILIPPINES First Regular Session
IMPLEMENTING RULES AND REGULATIONS (IRR) IN THE CONDUCT OF THE 2011 NATIONAL CPA MOCK BOARD EXAMINATION
NO. 3, SERIES 2010
IRR 1.0 GENERAL GUIDELINES IRR 1.1 The National CPA Mock Board Examination is a nationwide-simultaneous event to be conducted by region across the country. IRR 1.2 The National CPA Mock Board Examination is open for application to students, Preferably graduating students, who are enrolled in a BS in Accountancy Program. IRR 1.3 The aspiring examinee for this event must be at least a 3rd year level of a 4-year course, 3rd year level of a 3-year course, or a 4th year level of a 5-year course.IRR 2.0 REQUIREMENTS IRR 2.1 Each examinee must comply with the following requirements (hardcopy): • Duly accomplished application form from the Office of the National Vice-President for Academics (downloadable at nfjpia.yolasite.com and nfjpia1011.multiply.com). • 1×1 ID picture (picture must be attached to the registration form). • Photocopy of school I.D. • Photocopy of recent registration/enrollment form.
IRR 2.2 All of the listed requirements must be placed in a short brown envelope.
What is Mock Board Examination? A Mock Board is a simulation for the actual board examination. The Professional Regulation Commission or PRC has nothing to do with the mock board examination. Any school or organization can conduct a mock board exam without notice or consultation with PRC.
Oftentimes different colleges from various universities conduct mock board examination to students who will be taking the actual board exam. Mostly Engineering and Accounting courses conduct the said type of examination.
This article is the continuation of the two part article on learning ratio analysis. The first part of the article which was posted few days ago discusses the meaning of ratio analysis and other terms of ratio analysis like financial statement analysis and the technique being used. Now we are going to continue learning about the two other techniques of financial statement analysis which is the Profitability ratio and the Solvency Ratio.
Profitability Ratio This is the company’s ability to gain profit.
Rate of Return or Return on Investment – measures the net income generated by each dollar of investment.
Ratio Analysis also known as Financial Statement Analysis is one important topic in Cost Accounting and an integral part of Management Advisory Services. Most students are having difficulty in dealing with this topic because of the many formulas to remember. Given below are the key points one must remember in financial ratio analysis and is the easy way to study the financial statement analysis.
What is Ratio Analysis? Ratio Analysis is the process of identifying company’s financial strengths and weaknesses. This is done by properly establishing relationships between financial accounts in the financial statements namely the statement of financial position and statement of comprehensive income.
One statement being made before computing the total amount of cash both on hand in bank is the statement of bank reconciliation. This statement is not one of the basic financial reports that every company must make annually but this statement is necessary to reach the true amount of cash. This article is not intended to discuss about Bank Reconciliation because this was discuss in a different page. This write up is consist of the lists of formulas being used in computing for adjusted cash on hand or in bank, the total amount of outstanding check and the total amount of deposits in transit.
One important process in accounting is what you call bank reconciliation. This is to compare the cash transaction in your cash bank account and the cash balance in your own book. Actually this is a statement to be made monthly showing if the cash balance per ledger account and the cash balance per bank agrees.
The standards being used in practicing the accountancy profession in the Philippines is not created by ordinary individuals. They are not just mere suggestions by any businessman or any politician, but they are created by a set of body made by the Professional Regulation Commission (PRC).
The Accounting Standards Council (ASC) is responsible in establishing and improving accounting standards that will be generally accepted here in the Philippines but now the Accounting Standards Council is being replaced by the Financial Reporting Standards Council.
Accounting has many definitions and among the very common definition of accounting is it is a system that provides quantitative information about finances and preparing the financial reports of an entity. But different Agencies have its definition of Accounting.
According to the Accounting Standards Council accounting is a service activity. Its function is to provide quantitative information, primarily financial in nature, about economic entities, that is intended to be useful in making economic decisions.
