Question

1 why is it important for students in accounting to understand how to use a manual, paper based accounting system when most accounting systems are electronic today?

2- why are there so many different accounting information systems software packages ?

3- in your opinion, what area of accounting needa computerized accounting software the most? payroll? tax? auditing? something else?

4- forensic means " suitable for use in a court of law." how does that have anything to do with accounting?

5- what is an example of RATIONALIZATION as one of the three elements causing a person to commit fraud?

6- why is it important to have a very sound and well developed internal control structure ?

7- what should be done if differences are found between the bank statements and the book account?

Answer 1

1. It is important for students in accounting to understand how to use a manual paper based accounting system when most accounting systems are electronic today is because Manual accounting systems are easy to use and cost next to nothing, which makes them ideal for small business owners.

2. There are so many different accounting information systems software packages in the market as the accounting software packages are designed, built & customised according to the need & size of the business.

3. Accroding to my opinion, the area of accounting which needs a accouting software the most are payroll as payroll accouting software is needed for keeping a record of every employee in the organisation.

4.  Forensic means " suitable for use in a court of law." Forensic accountants are hired because they prepare for litigation related to insurance claims, insolvency, divorces, embezzlement, fraud, skimming, and any type of financial theft.

5. An example of rationalization is : A person says I have been premium for years & years & He says its my time to get the amount back by forging an accident of the car & collecting the claim amount when the accident is not genuine.

6. Effective internal control reduces the risk of loss of asset, and helps in ensuring that planned information is complete and accurate, financial statements are reliable, and the plan's operations are conducted in accordance with the provisions of applicable laws and regulations.

7. If differences are found between the bank statements and the book account, then bank renciliation statment or renciliation of bank account with book account needs to be done.