Question

5. Explain similarities and differences between assurance and security in a Supply Chain.

6. Explain the distinction between accounting principles and auditing standards.

7. Explain the distinction between the Generally Accepted Accounting Principles and the International Financial Reporting Standards.

8. Explain the Commerce Clause of the U.S.A. Constitution and the importance to business activities.

Answer 1

similarities and difference between assurance and security in a supply chain :-

assurance is the similar word to the word insurance . Assurance is monetary payment psaid for a event happened.

the supply chain assurance deals with the global supply chain , security , quality and sustainability .

as you have observed here, assurance itself cin cludes the security.

security is a part of assurance in supply chain.

supply chain assurance reduces the risk in supply chain

this assurance in supply chain is applicable in various sectors like information technology IT , cyber securtiy , logistics , e- commerce , retail supermarket chains like walmart , etc

each and every organisation beees and depends on the third party organisation for supply chains and supply chain management .

they need third party organisations in order to meet their mission and complete their objectives in order to reach thier goals . and also to meet the customer demand.

this involves risk. and in order to overcome the risk , there is a requirement of security .

the organisations depend on these third party organisations for security of the supply chain.

this security protects the supply chain from all types of threats.

this also includes the supplier audits.

the securirty systems of supply chain .

lets take a example of a branded car company .

The car company forecast the assosiated cost which the client does for his company he also decides a prohibitive amount and there will be aggrenebt between a parent company and thir party company which provides the assurance and security to the supply chain of the company

This third party company performs all the functions of the supplychain management . it also includes assurance and security in the supply chain.

distiinction  between accounting principle and auditing standards.

Accounting principles are the set of rules to be follwed by the organisations while recording preparing analysing and storing the financial data or the accounting data of that  organisation All these rules together are called as set of principles of accounting.

Regarding this accounting principle the financial accounting standards board issued as set of accounting princciples which are popularly called as generally accepted accounting principles.These accounting principles include

cost principle

materiality princple

revenue recognition principle

going concern principle

consistency principle

accrual principle

conservative principle

All the publicly listed companies should folloe the GAAP accounting principle .

All the accounts are prepared based on the guidelines of GAAP.

Auditing standards :-

auditing standards measure the quality of audits and auditing.

the basic principles for auditing standarsds are basic asumptions , logical principles and consisternt principles.

these are popularly called as generally accepted accounting standards (GAAS).

there are three genreal standrads of auditing , they are general standrs, standards of field work and standards of reporting.

distinction between generally accepted accounting principles and international finanacial reporting standards :-

generally accepted accounting principles (GAAP) :-

generally accepted accounting principles GAAP are the set of accounting principles which contains the rules of accounting.

based on these principles , all thge publicly listed companies has to follow the rules and guidelines of these accounting principles.

these accounting principes are issued by financial accounting standards board (FASB).

international financial reporting standards :-

international financial reporting standards is popularly called as IFRS.

these financial reporting sandards are issued by international accounting standards board (IASB)

this will protect the investors .

it increases the transparency in the financial information presentation.

commerce clause of the USA constitution and the importance to business activities :-

this commerce clause of usa constituion declares that it has the power to regulate , control the commerce with international nations and also with the states of usa.

this is done to protect the economy from collapsing by the suspicious activities or financial frauds and scams.

this power is holded by the united states congress.

it is in the article 1 , section 8, clause 3 of the US constitution

this clause is very much importanat in order to save te economy and the business organisations without performing any types of scams and frauds.

this led to the rapid indutrialisation in the united states which boosted the conomy.

it is the most important fundamental power .

it is the back bone to the business organisations.

i have put a lot of efforts to answer these questions . thankyou .