Management Accounting And Financial Management

Decent Essays
All Logistics is facing a difficult situation when expanding their logistic services across the Atlantic to Norway. Our investors are losing their trust in our business because the service revenue of our company decreased in comparison with that of our competitors. The company’s executive staff suggested seven solutions to improve the financial results in the short-term and to lower the investors’ tension due to the company’s earning. However, we should consider carefully before implementing the solutions because some suggestions may potentially violate the four standards (competence, confidentially, integrity, and credibility) under the “Standards of Ethical Behavior for Practitioners of Management Accounting and Financial Management,” and the impacts of each solution in the long-term.
The suggestion we should consider is “Pressuring current customers to take early delivery of goods before the end of the year so that more revenue can be reported in this year’s financial statements.” The tactic violates the integrity and credibility standards because transferring revenue of the next year to the current year’s revenue leads to overstate revenue of the current year. The information may lead investors to think that the financial situation of the company is better than it actually is. That drives the investors to make wrong investment decisions.
Another suggestion is “Recording executive year-end bonus compensation for the current year in the next year.” It violates the

Related Documents

  • Great Essays

    American Food Supplies Inc. Students Name: College: Case Study: Date: 1. Lessons learnt with regards to over reliance on a third party confirmation Confirmation is a process of gathering and evaluating third party direct communication in response to a request for details regarding individual items that affect a company 's financial statement assertions. In the American food suppliers’ case study, third party confirmation was used where they relied on the vendors’ sales people.…

    • 1475 Words
    • 6 Pages
    Great Essays
  • Improved Essays

    Wgu Est1 Task 2

    • 787 Words
    • 4 Pages

    As a consulting company, our expertise is engaged in delivering preplanned programs to meet the needs of our clients. Some of the services we offer as a company are: win and win solutions, end to end solutions. I will use our company knowledge to help our clients grow. Your company will have the opportunity to gain benefits in many ways. Our industry is focused on providing your company a better understanding of changes that must occur within the company.…

    • 787 Words
    • 4 Pages
    Improved Essays
  • Improved Essays

    1. How should you handle this situation? This situation should be handled rationally, calmly and ethically. This can be accomplished by following the steps outlined in the book which include finding the benefits to the person who asked the favor and finding who it might prove detrimental to, in addition, one must find another way to go about the request and finally go with what you think your family and friends would want to see if it were on television.…

    • 494 Words
    • 2 Pages
    Improved Essays
  • Superior Essays

    Worksheet for You Decide Name: Course Code Acct555 Grade ___/ Date: February 13, 2013 Questions: Q1: Discuss how the SEC has influence (if any) over the audit of Smackey Dog Foods, Inc. Solution: The SEC does have substantial influence on the audit of the company, by the auditing firm Keller CPAs. The influence can be observed in the audit standards that have to be followed in establishing the independence of auditors involved in the audit of the Company.…

    • 1753 Words
    • 8 Pages
    Superior Essays
  • Superior Essays

    Mrs. Wardlaw, I am reaching out to you today to discuss the possibility of fraud within the Apollo Shoes financial statements. After reading through some company documents in preparation of this Audit I have noticed multiple red flags that although in themselves do not constitute fraud outright, they do demand that we investigate this issues further to ensure fraud is not taking place. Through my initial research I believe the possibility of fraud at Apollo Shoes to be very high, and as such we must take precautionary measures to avoid risk falling back on the firm. In my next paragraphs I will outline some of the questionable practices I have noticed from the board of directors meeting minutes, and my analytical review, and why these factors…

    • 1781 Words
    • 8 Pages
    Superior Essays
  • Superior Essays

    Evaluate any damaging financial and ethical repercussions of failure to include the inventory write-downs in the financial statements. Prepare a recommendation to the CFO, evaluating the negative impact of a civil fraud penalty on the corporation as a result of the IRS audit. In the recommendation, include essential internal control procedures to prevent fraudulent financial reporting from occurring, as well as the major obligation of the CEO and CFO to ensure compliance. Inventory write-downs are recorded by reducing the amount reported as inventory. Inventory write-downs include the operating expenses that the management team or the company has incurred.…

    • 1163 Words
    • 5 Pages
    Superior Essays
  • Decent Essays

    Wgu Management Accounting

    • 273 Words
    • 2 Pages

    Planning sets the foundation of an organization and is one of the most fundamental components of business operations. Resource planning provides business leaders with an opportunity to develop strong strategic decisions through clear direction, collecting and analyzing information, anticipating problems, and managing change. Additionally, resource planning involves the internal analysis within the organization and the external analysis of the industry and its competitive environment. Therefore, leaders must have access to accurate, high quality data from advanced information systems in order to make crucial decisions by comparing statistics with the economy, the market, and competitors, while considering risk.…

    • 273 Words
    • 2 Pages
    Decent Essays
  • Superior Essays

    Week Four: Strategic Financial Planning Post by Day 4 a brief description of the government or non-profit organization you selected. Then, explain the internal and external factors that might impede the development of a successful financial strategic plan. Provide examples of at least two internal factors and one external factor, and explain how they could impact the organization. Then, identify how these obstacles may be overcome. Introduction…

    • 1068 Words
    • 5 Pages
    Superior Essays
  • Improved Essays

    This case involves a consumer goods manufacturer by the name Rainbarrel Products. According to the text, the company is struggling to adapt to a market characterized by reduced consumption of products after a ten-year period of boom. The organization’s Chief Executive Officer Keith Randall decides to hire a professional to get things under control. Thus, Hiram Phillips is considered and takes up the mantle as the Chief Finance and Administration Officer. Within no time, Hiram introduces a lot of changes to achieve what he considers good for the company.…

    • 813 Words
    • 4 Pages
    Improved Essays
  • Improved Essays

    Financial Accounting and Managerial Accounting Financial accounting and managerial accounting are both used to deliver facts about the organization to a decision maker. Managerial accounting is often mentioned as “cost accounting”. This is the method of categorizing, calculating, investigating, understanding, and connecting data for determining the businesses goals. Managerial accounting and financial accounting vary in significant ways, managerial accounting is designed to assist managers in the business to make assessments, and financial accounting gives information to outside groups (“Managerial Accounting Definition | Investopedia,” n.d.).…

    • 822 Words
    • 4 Pages
    Improved Essays
  • Improved Essays

    This is to increment the accountability of its managers and proximately monitor its performance and utilization of the investments made by its financiers. In this paper, I will review the information that is presented in its financial statements for the periods that have passed recently. First and foremost, I will consider the income statements, reported on the 02-10-2016. Considering total revenue; there was an evidence of an increase of the revenue amassed by the company. This is because in the financial report from the precedent quarter, the total revenue accumulated was $13,512,000, and in the latest report, the revenue was at a high of $15,244,000; this showed the evidence of an increase in earnings from its income engendering activities.…

    • 729 Words
    • 3 Pages
    Improved Essays
  • Improved Essays

    External Ethical Issues

    • 940 Words
    • 4 Pages

    Ethics can be described as an acceptable code of conduct or behaviour someone exhibits or is expected to display in a society. That behaviour is dictated by various scenarios or situations that are different in nature. For example in a company there are various ethical issues that dictate how the company runs. These ethical issues can be internal or external in nature. Internal ethical issues mainly involve the shareholders of a company, employees and the management.…

    • 940 Words
    • 4 Pages
    Improved Essays
  • Improved Essays

    Case 11.1: Accounting/Finance Ethics Scenarios Main Ethical Issue(s) Financial professionals are often confronted with fiduciary issues which challenge their integrity, honesty, and ability to be transparent with stockholders and customers. They may be pressured to make decisions or participate in accounting practices that are clearly against company policy, financial or accounting rules, regulations, and code of ethics. In all three scenarios, employees are asked to make such decisions. Concepts and Theories Relevant to Case Economics and the bottom line are often the driving force behind decisions that are made within the organization.…

    • 1208 Words
    • 5 Pages
    Improved Essays
  • Superior Essays

    Upon the completion of this course I have come across topics that have interested me and increased my knowledge especially in the financial and accounting aspect. This course has introduced me to understanding the relationship between financial and accounting in making an effective strategic decision. In as much they sound alike they are different and used in different purposes, both accounts are important to the business but are used for different purposes. Financial statements are requirement for any organisation and are published at the end of a financial period for its stakeholder, shareholder and customers to see, they show reports of performance on a historic basis and what has been achieved over the years. At the time the statement is…

    • 1536 Words
    • 7 Pages
    Superior Essays
  • Improved Essays

    a. What is accounting and how does it help you manage your personal finance? b. Describe the three products of accounting and bookkeeping procedures that are most useful in personal financial planning. C. How could personal financial software assist you in your personal financial decisions? Accounting is one of those tools that make complex things like a huge sum and its breaking down through somehow diverse and seemingly unrelated activities look relatively easy to grasp to us as we strive to follow it basics principles before we get to its most difficult parts as people who stepped on the earth centuries before tried to do and as our descendants will testify about us and just as like we are doing right now . Investopedia defines accounting…

    • 1243 Words
    • 5 Pages
    Improved Essays