logo

Minty Cola

   

Added on  2020-07-22

15 Pages5290 Words293 Views
FinanceStatistics and ProbabilityPolitical Science
 | 
 | 
 | 
FINANCIAL SYSTEMS
Minty Cola_1

Table of ContentsINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................11.1: Purpose and use of different accounting record..............................................................11.2 Importance and meaning of financial concepts................................................................21.3: Evaluating those factors which influence the nature of minty cola................................3TASK 2............................................................................................................................................52.1 Different component of business risk ..............................................................................52.2 Analysis of control system in place of minty cola...........................................................62.3: Evaluate risk of fraud within Minty cola and method to detect fraud.............................7TASK 3............................................................................................................................................83.1: Plan a audit report as per scope, materiality and risk......................................................83.2: Identify and make use of appropriate audit test..............................................................93.3: Audit process in proper manner....................................................................................10TASK 4..........................................................................................................................................104.1: Draft audit report...........................................................................................................104.2: Suitable management letter ..........................................................................................11CONCLUSION..............................................................................................................................12REFERENCES..............................................................................................................................13
Minty Cola_2

INTRODUCTIONFinancial system is a kind of system through which funds are being shared amonglenders, investor and borrowers. It is functioned at national, international as well as enterprisesspecific level. Under this system cash, credit and other sources are categories in financial system.It measure recording, verification and reporting of financial transactions that affect profitability,revenue and other assets and liabilities of a company (Abdullah and Sofian, 2012). Under thisproject report minty cola company is highlight to know about their management of financialsystem. There are various aspects of minty cola like how they are maintain records and followingaccounting concept in their business. Likewise, factors those are affecting accounting system.Also different kind of business risk associated with minty cola and on the basis of properevaluation of risk of fraud and appropriate method to control it. A audit plan is bing designed forminty cola and a proper pattern of audit report to analyse the risk. And at last a managementletter is being drafted in respect to statutory audit of minty cola.TASK 11.1: Purpose and use of different accounting recordAccounting record: It refer to be important source of information that are used bycompany to prepare, verify and analyse the financial statements. It consist of variousdocumentation that are involve in formulation of financial statements and record which arerelated with review of financial audit like recording of assets and liabilities, ledger statements,journal and invoice statement of that particular transactions. Purpose of accounting is to accrued and report on financial data regarding performance,position and cash flow management of Minty Cola to reach a specific decision that how to Mintycola mange their business transaction. Some of the accounting records are:ledger: It is said to be summary of all cash transactions those are entered in relation to journalwhich are list person transaction with concern data (Ajmiand et. al., 2014). It is needed toprepare financial statements which includes different assets, owner's equity and otherexpenditure. It is used to prepare trail balance to check the arithmetical accuracy of the books ofaccount.1
Minty Cola_3

Prime entry book: The another name of this is book of first entry as it record those amountwhich a minty cola is receiving and spending first recorded before entered into ledger book. Themain part of this books are cash, sales day book, purchase book, sales return and purchase returnand journal book. Accounting is the major aspect of business and has various advantages. Itprovide information about various situations that a businesses possess to identify good and badfinancial condition of minty coal. Accounting record are vital for a business entity for futurereason like:It provide base of even practices to differentiate one results with another one.It help to increase volume of business outcome in huge number of transaction. It help toeliminated necessity of identifying several transactions (Brusca and et. al., 2016).1.2 Importance and meaning of financial conceptsFinance is most important sector that deal with the process of investment. It includesvarious aspects of assets and liabilities under the condition of various level of uncertainty andrisk factors associated with minty cola. There are so many fundamental concepts use bycompany in order to manager their funds. Like:Accrual concept: It is said to be fundamental concept of accounting which is used to recordincome when they are attained and not when they are received in cash and also recording ofexpenses at the time when they are receive but not if they are paid. Importance:It help in determining net profit of the company.It will assist in identify current expenses and actual profit at the specific time duration. Going concern concept: It follow that principles which is based on assumption that minty colawill remain in business for long time in future. it means the company will not stop their operationand liquidity assets in closer term that means accounts are being prepared on going concernbasis.Importance:According to this concepts, the fixed assets is treated as expenditure for that year.Under this depreciation is charged over fixed assets.Business entity: It refer to be major accounting principles of accounting that explains thatbusiness should be treated as separate entity form owners prospective or investor point of view.Under this concept all activities and operations of minty cola are separately recorded from2
Minty Cola_4

End of preview

Want to access all the pages? Upload your documents or become a member.

Related Documents
Accounting System and Auditing Introductory Introduction
|14
|4942
|432

Case Study Of Minty Cola Co- Effective Accounting System
|15
|5127
|340

The Importance and Meaning of the Fundamental Accounting Concepts
|16
|5498
|45

Financial System and Auditing Report - Minty Cola Co
|13
|4704
|80

Accounting System and Auditing TABLE OF CONTENTS INTRODUCTION 1 TASK 11
|15
|4544
|116

Importance of Keeping Accounting Systems- Minty Cola Co
|15
|4697
|35