Answer to Question #54568 in Accounting for lang ngoc pghuong

Question

1. To be able to complete budget reporting on time, how should accountants approach new project reporting in a manufacturing business?

2. How should budget assumptions be dealt with to guard against unethical assumptions?

3. Who is responsible for budget management?

4. In order to be effective, which type of executives should make up the majority of the audit committee members?

Answer 1

1. To be able to complete budget reporting on time, accountants should approach new project reporting in a manufacturing business, for which some fixed date for reporting is requested with the fine fees for the late submission.
2. To guard against unethical assumptions an ethical business organizes its financial house in ways that reflect a deep understanding of the company's responsibility to a range of stakeholders, from its employees to its community to the environment. Many business budgeting decisions involve choices between thoughtfully dealing with the consequences of company policies and earning extra money by cutting corners.
3. A budget manager is anyone named as the responsible individual for an active account. Budget managers may have budget responsibility for more than one active account. The following sections outline some of the responsibilities and financial duties of a budget manager named on a department, agency, center, grant or any other unit account that has a budget.
4. In order to be effective, it would be expected that Audit Committee members have the ability to:
-act in the best interests of the entity as a whole;
-be proactive in identifying issues and risks that require further management attention;
-ask relevant questions, evaluate the answers and continue to probe for information until completely satisfied with the answers provided;
-encourage openness and transparency;
-work constructively with management to achieve continuous improvement within the entity;
-express opinions frankly, ask questions that draw out the key issues and pursue independent lines of enquiry;
-appreciate the entity’s culture and values, and a determination to uphold these values coupled with a thoughtful approach to the ethical issues that might be faced;
-display a professional approach to duties, including an appropriate commitment of time and effort;
-convey technical matters to other members of the committee, where Audit Committee members have been chosen for particular technical skills.