Management Accounting

This article covers various topics related to Management Accounting such as trust records, compliance requirements, accounting systems, source documents, and more. It explains the policies and procedures in place to ensure trust requirements are met, the types of accounting systems used, and the powers and duties of a trustee. It also discusses the different types of trusts and the process of winding up a trust.

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Management Accounting

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Table of Contents
1. What documents are required with trust records?................................................................4
2. What policy and procedure are in place at your organization to ensure trust requirements
are met, and meet compliance requirements?..............................................................................4
3. It is acceptable that you can’t be a qualified accountant, lawyer, conveyance financial
planner, etc. So what professional third parties will you use and refer at your organization?
What is the process to action their recommendations and how is it disbursed/ communicated to
the employees?.............................................................................................................................5
4. What type of accounting systems does the organization use and why was it chosen? What
are the compliance requirements for trust accounts?...................................................................6
5. What are source documents and how are they identified, stored and retrieved?..................7
6. If there is an error at your organization, how it is reported and how it is corrected? Who
with you seek out if you needed help with a problem? Which are the two sections of the Act
that provide for trust account deficiency and irregularity, and explain what is required when
deficiency occurs?........................................................................................................................8
7. What is a trust, and why or when would I prefer to use one. How did they come about and
why?.............................................................................................................................................9
8. What are the powers and duties of a trustee? Are there any reasons why wouldn’t you
agree to become a trustee?.........................................................................................................10
9. List the types of trusts with the brief clarification of how they differ................................11
10. What is, and what are the features of a fiduciary relationship? Who is a fiduciary
obligation?..................................................................................................................................12
11. Trusts are inter vivos. What does this mean? Include express and discretionary trusts in
your answer................................................................................................................................13
12. Describe the winding up process of a trust.....................................................................13
13. A different process for manual versus electronic transaction..............................................14
14. How is your client fund protected? Describe current data protection legislation with the
issue of privacy?.........................................................................................................................15
15. How are fund disbursed and how is that disbursement authorised, checked for accuracy
and to prevent fraud? Refer to relevant legislation to answer?..................................................16
16. Who reviews and how is your policy and procedure system reviewed for compliance and
currency?....................................................................................................................................17

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17. What is the auditing and financial reporting system in an organisation? What legislation is
required to compile with it?.......................................................................................................18
18. What CPD requirement is available for staff and in what areas of expertise would you like
them to be available for you?.....................................................................................................19
19. Explain five major elements which make up a trust?..........................................................19
20. after receiving trust money, what must you do?..................................................................20
21. Explain the two requirement of computerized accounting systems set up?.......................21
22. What must you do after the each and every month regarding trust account?......................22
23. Act ethically and complying with all statutory requirement in the company, what does it
mean to you and your organisation?..........................................................................................22
24. What we need to explain to our client while charging fee from them?...............................23
25. Brief of question 11-20:.......................................................................................................23
26 complete a file note for the q6 above then another file note when the audit has to be
completed...................................................................................................................................24
References......................................................................................................................................27

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1. What documents are required with trust records?
It can be determined that there are various records which are to be kept with that of the trust
records so as to maintain the transparency as well as the effectiveness. In addition to the register
of numbers the societies or trust should also consider the types of records that need to be
maintained (Hadzhikotev, 2015). The documents size will be affected by the size and structure
and also by the activities that is performed by the particular society and trust (Reddy & Kamal,
2017). The financial records that are necessary in order to retain the society would include the
following:
 All bank account statements
 Receipt book properly numbered and its duplicate copy
 The bank deposit book
 All payment authorizations and invoices
 All the cheque books whether it is used or currently in processing
 The payment and receipt journal
 A petty cash payment book
With this there is also the need for the common seal on the incorporation by all the societies.
This seal is generally used in the documents which are legal and in which the society has entered
into so that the accountability in the financial reporting can be maintained (Reddy & Kamal,
2017).

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2. What policy and procedure are in place at your organization to ensure trust
requirements are met, and meet compliance requirements?
There are several procedures and policies which are established so as to ensure that the
compliance requirements are met and the success of the organization has been achieved
(Hadzhikotev, 2015). In order to meet the compliance requirements the following procedures are
been followed:
 The reporting requirements as well as the documents of the trust are reviewed on regular
basis so as to enable that they meet the legislative and the compliance requirements.
 The monitoring of records is done so as to ensure the security of the trust records as they
needs to be implemented and developed.
 The entries and the transactions of the trust accounts are checked regularly and also
monitored so as to ensure that they comply with the agency practice as well as the legislative
requirements (Kang, et. al., 2018)
 The periodic reconciliation is done by the licensing in charge with that of the legislative
and the compliance requirements.
 In order to deliver the accuracy in financial reporting the periodic financial reports are
prepared and then discussed it with the clients (Hadzhikotev, 2015).
 The authorization and the verification of the trust accounts is done so as to determine that
the legislative audit requirements are been met and in turn will enable to achieve the
transparency as well as the accountability in the financial reporting so that the success of the
organization can be maintained on the external environment (Hadzhikotev, 2015).

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3. It is acceptable that you can’t be a qualified accountant, lawyer, conveyance
financial planner, etc. So what professional third parties will you use and refer at your
organization? What is the process to action their recommendations and how is it disbursed/
communicated to the employees?
As it has been determined that the no one can be the qualified professional so in order to
maintain the effectiveness and efficiency within the organization it is necessary to take the use of
third parties so that the growth of the organization can be achieved. There is the third party who
is doing the business so that the employees can be hired directly and the students can get the
employment opportunities. The third parties who will be used in the organization are:
 Employment agencies: these agencies list the various situations for the number of clients
in organizations and obtain the imbursement in return for the candidate being hired.
 Contract Recruiter: these are the organizations which makes the agreement with an
company to act as the employer’s representative in the employ occupation as well as the
recruiting (Shanker, 2018).
The process which is used is to do the proper auditing of the third party so that the risk of
getting the loss can be reduced and the proper investigation also is done of the third party so as to
maintain the transparency as well as the effectiveness in their financial reporting. These
recommendations which are provided by the third party to the organization is communicated to
the employees through proper channel that is the online channel is been created and then the
relevant information to be communicated is shared at that platform so that anyone can easily
access the information and can also revert on the same platform this will enable to sustain the
sense of teamwork.

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4. What type of accounting systems does the organization use and why was it chosen?
What are the compliance requirements for trust accounts?
The organizations use various types of the accounting systems in the organization which are as
follows:
Single entry system: This is one of the indispensable bookkeeping structure and this system is
useful for the undersized organizations that have not many and trouble-free operations.
Double entry System: this is difficult but additional perfect system. In this each recognition must
be identical to the deduction (Alles, et. al.,2018).
Manual System: This means that there is not any involvement of the computer in the financial
reporting.
Computerized system: The use of the computer is done so as to accomplish the accounting
functions.
These systems are chosen by the organizations so that the accuracy in the financial reporting can
be done and with this the financial performance of the organization can easily be examined.
The compliance requirements for the trust accounts are as follows:
Requirements for recordkeeping for trust fund deposits
Requirements for trust fund disbursements
Requirements for all trust fund transactions
Reconciliation requirements for trust funds
Maintaing associated documents

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5. What are source documents and how are they identified, stored and retrieved?
The source documents are the original records which contains the details related to the
substantiate a transaction entered in the accounting system. This is also the document in which
the data collected for the clinical purpose is first recorded. This is latterly entered in the case
report form. For illustration: A corporation foundation article for the cassette of the products
buyer is the proof of purchase of the provider which is incorporated by the receiving tickets and
the purchase order. The identification of the source documents are done through the proper data
and the information of the communication such as the quantity of the matter and to whom the
contract has to be made. With this it also determines the principle of the deal and the
appointment of transaction. The common documents of the source documents include:
 Invoices
 Cancelled checks
 Memo of credit for the refund of customer
 Deposit slips
 Purchase order
 Computer generated receipts
 The time cards of employees
The recording of the source documents should be done in appropriate manner and also the
accurate accounting journal as soon as the transaction has been preceded. Once the recording is
done then all the documents should be filed in some of the system which is used by the
organization so that they can easily be retrieved anytime whenever needed. If it is necessary to
facilitate the storage of the accounting and legal documents then it is necessary to check with the

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relevant institution so that the documents can be accepted in the manner in which the planning
has been done to use.
6. If there is an error at your organization, how it is reported and how it is corrected?
Who with you seek out if you needed help with a problem? Which are the two sections of
the Act that provide for trust account deficiency and irregularity, and explain what is
required when deficiency occurs?
If there is an error in the reporting then it is examined that the mistake basically occurs in the
credit reports (Raskin, 2016). The credit bureaus are basically taken into the consideration so that
the mistake can be corrected when the mistake has been found but in some cases the mistakes
which are found can go unnoticed for the longer period of time. These mistakes may cause the
little amount of the damage to the credit score but the damage depends upon the mistake which
has been made by the organizations. The two sections which determine the trust account
deficiency and irregularities are as follows:
Deficiency: Section 226 of Legal Professional Act 2008
Irregularity: Section 227 (2)
When the deficiency occurs in the organization then it is necessary to all the financial records as
well as the transactions properly so that the area of the problem can be determined and
accordingly the actions for the future growth and success can be identified. With this it is also
necessary to identify all the credit transactions so that the information for the credit as well as the
debit transactions where the mistakes are made can be identified and then the improvement for
the mistaken transactions can be done and then the proper planning for removing or eradicating
the deficiencies can be made (Longenecker & Fink, 2015).

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7. What is a trust, and why or when would I prefer to use one. How did they come
about and why?
The trust can be defined as the worldwide assessment of relations dependability as observed by
the representative. Hierarchical trust is characterized as a legislative body feeling of conviction
that the organization will execute actions that are gainful, or if nothing else not. In the UK an
exposed or straightforward trust is one where the recipient has a prompt and supreme ideal to
both the capital and salary held in the trust. Exposed trusts are ordinarily used to exchange
resources for minors. By chance, the job of remuneration in driving trust has additionally been
addressed by crafted by Donald Ferrin and Kurt Dirks, who trust compensate structures impact
relational trust in the work environment and have demonstrated its effect on results like work
execution, hierarchical citizenship, authoritative responsibility, turnover expectation, fulfillment
and gathering execution. In addition to other things, they found that the "examinations, joined
with earlier research, recommend that directors can anticipate that reward will have solid,
unsurprising impacts on relational trust." Lastly, do recollect that trust is complementary. As
Harold Macmillan once said "A man who confides in no one is well-suited to be the sort of man
no one trusts." The surest method to gain the trust of workers is to demonstrate to them that you
trust them consequently. At the point when joined with a feeling of prosperity and the privilege
natural variables, they will result in commitment, vitality, a helped feeling of prosperity, and
reasonable elite for work results.
8. What are the powers and duties of a trustee? Are there any reasons why wouldn’t
you agree to become a trustee?
Powers of Trustee:

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The Trust Deed generally decides the forces of a Trustee. The Deed regularly concedes Trustees
with wide powers to permit the best possible organization of the trust. While these forces
fluctuate, the most well-known forces incorporate purchasing and offering trust property,
deciding appropriations to recipients, the contracting of experts, tradesmen and temporary
workers and in addition the opening and working bank or building society accounts.
Duties of Trustee:
 Lodge the trust deed with master of the High Court: As per Section 4 of the Act, Trustees
(before he or she accept control of the trust property) to stop the underlying trust deed with the
Master; pay the Master's expenses; be acquainted with the trust directions including the nature
and degree of their forces and obligations and to hold up alterations to the deed with the Master.
 Acting only when authorized to do so: As indicated by Section 6 of the Act, any
individual who is designated as a Trustee as far as a trust instrument, Section 7 of the Act or a
court arrange which came into power after the beginning of the Act, will act in that limit just
whenever approved thereto by the Master.
Reasons for not becoming trustee:
Loss of ownership of assets: On the off chance that you exchange your own resources for a
trust, at that point the trustees of that trust will control the benefits. Despite the fact that you can
hold some control by holding the ability to choose as well as evacuate trustees, or even by being
a trustee yourself, recall that advantages you exchange to the trust are not any more your own.
On the off chance that you keep on regarding the advantages as your own, any trust could be
available to challenge as a sham.

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9. List the types of trusts with the brief clarification of how they differ.
Revocable trusts: Revocable trusts are complete amid the life span of the belief maker and can
be accustomed, distorted, tainted or repudiated totally. Frequently called a living wage trust,
these are confides in which the trust maker connections the label of a goods to a conviction, fills
in as the underlying trustee, and can drive out the material goods from the expectation amid his
or her duration (Venkata, et. al., 2017).
Irrevocable trusts: Irrevocable trust is solitary which can't be adjusted, misrepresented, altered
or denied after its conception. Formerly a assets is exchanged to an unavoidable conviction,
nobody, counting the trust maker, can remove the belongings from the trust. It is conceivable to
buy survivorship extra security, the advantages of which can be detained by an obligatory trust.
With this there is assets defense trust, generous trust, productive trust, individual needs trust, tax
by pass trust and totten trusts. Not having the capacity to deny the trust is a piece of an exchange
off that accompanies a few different advantages. The most straightforward distinction between
the two is that advantages stay in the grantor's domain in a revocable trust however move out of
the home in an unalterable trust.
10. What is, and what are the features of a fiduciary relationship? Who is a fiduciary
obligation?
There are distinctive features which are being possessed by the fiduciary relationship such as:
Firstly, for a man to be a trustee, he more likely than not attempted to propel the interests of
another. Where such a position hosts been expected by one get-together to any lawful
relationship then that gathering's position is conceivably a guardian one. The situation of an
operator to the relationship exists to help the vital. Hence, a specialist is a guardian (Rifkin,
2014).

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Secondly, it gives the idea that the nearness of a capacity to modify the essential's lawful position
is a trademark which ought to connote a guardian relationship. Millet LJ called attention to those
guardian connections is regularly alluded to as connections of trust and certainty. This appears to
propose that trustee commitments append to the situation of trust in which a man has been set.
A person who has put the majority tremendous trust and confidence to administer and make sure
possessions or cash is the fiduciary obligation. It is also determined as the connection wherein
one person has a assurance to symbolize another's benefit. A guardian is held to a ordinary of
lead and belief over that of an foreigner or of an relaxed delegate. They must keep missing from
"self-managing" or "irreconcilable situations" in which the budding improvement to the guardian
is in strife with what is most excellent for the human being who confides in him/her/it.
11. Trusts are inter vivos. What does this mean? Include express and discretionary
trusts in your answer.
Inter vivos is a legitimate term alluding to an exchange or blessing made amid one's lifetime,
rather than a testamentary exchange (a blessing that produces results on death) under the subject
of trust. The phrase is frequently worn to depict a faith set up amid one's life span, i.e., an Inter
vivos trust instead of a Testamentary trust which is set up on one's passing, as a rule as a major
aspect of a willpower. An Inter vivos trust is frequently utilized synonymously with the added
typical term living wage trust, yet an Inter vivos trust, by definition, incorporates both revocable
and unalterable trust. An express trust is a trust made "in express terms, and generally in
composing, as recognized from one derived by the law from the direct or dealings of the
gatherings. While the discretionary trust he trustees may pay out wage to whichever of the
recipients they, in the sensible exercise of their prudence, think fit. They will typically
additionally have a capacity to pay out capital. They may have broad forces, even to include new

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recipients, however such powers may typically just be practiced genuine in light of a legitimate
concern for the recipients in general.
12. Describe the winding up process of a trust.
A trust is wounded up (conveyed to an end) when the majority of the trust's benefits are
circulated to the recipients or to another trust, either specifically or by method for resettlement.
Regardless of whether the trust is ended up right on time or in light of the fact that the trust has
arrived at the finish of its permissible life (a greatest of 80 years for a non-beneficent trust)
certain customs are required to record the finish of the trust.
Twisting up a trust does not expel any obligation a trustee has for assessment:
The trustee will stay obligated for the trust's expense liabilities following the ending up of a trust.
Once the trust's benefits are completely circulated the trustee's entitlement to repayment from the
trust's advantages is basically constrained. Thus a trustee may wish to look for individual
repayment from the last recipients for any deficiencies or liabilities in regard of any duty
commitments, before making the last conveyance of the trust's benefits. Where a recipient won't
give an acceptable repayment the trustee can apply to the Court for headings in this issue. The
demonstration of twisting up confide in itself is regularly the consequence of a trustee goals and
could possibly likewise require a deed to impact the twisting up (Furnham & Gunter, 2015). In
the event that the trust is GST enrolled there will be a suspension of the assessable movement at
the latest the twisting of the trust. A last GST return will be required and the trustees should de-
enroll the trust from GST.
13. A different process for manual versus electronic transaction
In an accounting process, various transaction lead to take place whether in a manual manner or in
the electronic frame Business uses the various process for managing and facilitating accounting

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transactions. There is mainly two process anticipated in an organization for managing
transactions: manual and electronic. It is important to utilize both of them in an appropriate
manner. Many businesses use both processes for managing various transactions. Thus, such
business units are hybrid in nature and write journal entries by hand while using a computerized
system to managing and create an electronic receipt. Following are certain differences which impose on
the process for manual and electronic transactions:
Elements Manual Electronic
Speed Manual transactions are signified less
speed because of chances of tally
relatively low in nature (Reddy &
Kamal, 2017).
The speed of facilitating transactions
in a digital system is more.
Moreover, chances of tally
transactions are quicker than manual
ones (Reddy & Kamal, 2017).
Reliability Manual transactions are more reliable
because all records kept in a ledger.
Thus, such aspects evaluated at any
course of time (Skilton, et. al., 2016).
Electronic transactions become
reliable but only when regular
backup facilitate. Regular backup
mitigates the risk but considers less
reliable.
Transparency Manual records are more transparent due
to bookkeeping in the ledger. All entries
can be added and subtracted properly due
to proper assessment. Further such
records assist in better management of
entries.
One of a major drawback of the
electronic system is transparency.
Like in any case of incorrect
information whole data can be
influenced.
14. How is your client fund protected? Describe current data protection legislation with the
issue of privacy?
A business or financial institutes need to protect their client fund properly. Every business has
certain shareholders which provide a fund to a business for managing their activities. It is really
essential to understand and determine the fact about client fund protection. Business
management needs to provide appropriate profit share with shareholders. One of an essential
thing through which client fund get protected is abiding legislation of privacy policies.
Moreover, a transparency is required for financial accounts where shareholders have a right to

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inspect the books of accounts. Thus, such sort of transparency is helpful in managing client fund
protected with surety. This results in business to underpin and accomplish all their desired
targets.
For management of information of business clients, one of an essential thing is to protect
information of client’s. The current data protection legislation in Australia formulated in 2014.
According to data protection act, business is abiding with certain rules and regulations where
they need to manage information of a client. If an organization leads to disclosing information of
their client then a user has a right to file a case against towards an association. Moreover, such
aspect harms goodwill of a business. In accounting, financial managers need to protect
information of their shareholder confidential (Simkin, et. al., 2014).
One of an issue with privacy is associated with manual handling of books and information.
Manual handling or computerized system both are at risk and easily get interpret by any other
else. Hence, business managers and financial managers require facilitation of records properly so
that they can handle information about their clients.
15. How are fund disbursed and how is that disbursement authorised, checked for accuracy
and to prevent fraud? Refer to relevant legislation to answer?
The fund is an essential thing which supports business and its operations to take place
effectively. It is really essential for an organization to disburse their fund in an effective manner.
Fundraise from a diverse range of sources and typically more difficult for an organization. Fund
gets disbursed properly with an assessment of various activities and operations. Moreover,
another essential fact is to prepare a sheet and chart so that each payout takes place in a
determined manner (Skilton, et. al., 2016).

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Such fund disbursement authorized with the support of finance manager and board of directors.
These two are major signatory which support managers for allocating money. Money allocation
needs to be authorized so that managers can easily use them. A legal documentation is essential
to prepare with a seal of the company. This enhances accuracy to facilitate fund. All things need
to be in the written frame rather than focus on the digital transcript. It is also helpful in
preventing fraud and malpractices against rising of the fund and its disbursement.
As per the financial management act, 2006, fund disbursement gets done through financial
manager only or from the board of directors. Moreover, such legislation needs to undertake by
management so that they lead to maintain the accuracy of information. Further, it will be going
to reduce chances of fraud as well.
16. Who reviews and how is your policy and procedure system reviewed for compliance
and currency?
A business needs to prepare and work on their policy and procedure. Policies and procedure are
helpful for an organisation in the management of activities. It is really essential for senior
management and board of directors to review policy once. With such board of directors,
shareholders of a business also have a right to review and inspect the policies and procedure.
Once shareholders pass the policy for an entity then it leads to actually implement at the
workplace (Skilton, et. al., 2016).
Another essential thing which needs to facilitate proper and reviewed policies and procedure
effectively is with the presentation. Managers need to present policies and procedures in front of
shareholders once and try to implement on a month free trial. Thus, with the support of
shareholders and policymakers, system reviews in an effective manner.

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As per the compliance perspective, policies and procedure reviewed effectively to compliance
with legislation properly. It is really essential for business managers and financial managers to
present policies and procedure for accounts. Financial managers, shareholders are the one which
inspects the policies effectively. One of a policy which leads to launch by an organisation is data
protection and disbursement of the fund. These two policies assist business to work against fraud
and evaluate the beneficial outcome. Such a factor contributes to the success of a firm as well as
management become able to accomplish desire targets. Hence, management needs to abide by
such policies and signify appropriate procedure to employees (Reddy & Kamala, 2017).
17. What is the auditing and financial reporting system in an organisation? What
legislation is required to compile with it?
A business needs a regular inspection of books and records to avoid deviation. With regular
inspection of books and accounts, management becomes able to handle various deviations
effectively. The financial inspection of books of accounts without working and considering own
interest describe auditing. It is really essential for an organisation to enforce auditing every year
so that all differences in books of accounts interpret. Financial reporting system analyses as a
process in which management kept their records of transactions so that all information of
financial attribute signified properly. The financial reporting system is helpful for auditing so
that business can identify and analyse major spots in their financial records and proclaim
beneficial outcome (Reddy & Kamal, 2017).
There is mainly two sorts of auditing organise by a venture which is internal and external.
Internal auditing support the business regarding to enhance the standard of operations and
remove all major conflicts at the workplace. External auditing support in define clear picture to

Management Accounting 19
senior management. This results in improving all derivative zones and clearly state about fraud
as well. Hence, auditing and financial reporting system are two major wheels for a business.
Much Australian business typically follows the Australian Auditing standard 2017 with different
norms and values. It is essential for an organisation to follow such policies and procedure so that
management can maximize their productivity and working ability. Thus, management needs to
follow such standard in internal auditing and financial reporting system with the inclusion of
ethical data and information (Reddy & Kamal, 2017).
18. What CPD requirement is available for staff and in what areas of expertise would you
like them to be available for you?
Staff members are the one which supports and helps business to grow and develop in an effective
manner. It is really essential for staff members to work and abide all legal formalities and
attribute of business. An organisation works on various practices so that their associate's abilities
to perform different task become possible. Continuous Professional development is a process
which assists in managing documents of various skills and experience gained through informally
and formal manner. Such practices and aspects are beyond the training process and assist an
individual to apply experience and learn things properly in an effective manner.
There are various continuing professional development requirement identify for staff members
which need to undertake by managers of a business. One of a thing is to get aware of policies and
procedure of business which are new in nature and which leads to implement in future.
Accounting is one of an expertise area where employees need to enhance their knowledge. The
account is a process for managing record and financial transactions. When employees start
focusing on accounting standard and norms they become able to handle and fulfill absence zone
of financial manager or accountant. Thus, at the time of emergency, such employees get

Management Accounting 20
available for an organisation which further facilitates business to manage their records.
Moreover, such employees also assist business to maintain and manage their records and can
audit records on monthly basis (Louwers, et. al., 2015).
19. Explain five major elements which make up a trust?
Trust is a process when two individual comes into a relationship whether it is formal or informal
a feeling generated (Warren, et. al., 2013). Such feeling and blind faith in each other consider as
trust. In an organisation, there is some milestone and elements interpret which support in making
a trust. Following are certain factors of trust which need to undertake by managers, the board of
directors and senior authority in an effective manner. Such points are helpful in increasing
knowledge about trust more properly in the accounting system as well:
Integrity: Integration is a process and one of a most essential element of trust. Integration
becomes possible with assistance and works on honestly and makes a body sincere. Moreover,
for integration, it is essential to work on ethical principles and policies so that integration leads to
maintain. Thus, with integration trust facilitate between each other.
Strength: Another thing which made trust on each other is strength. If a person is able to handle
any sort of risk then they are more reliable in nature. Moreover, strength also signifies in terms
of tough decisions. A person needs to be powerful so that appropriate faith in each other
becomes possible.
Independence: A person needs to be independent in nature and always try to bring their own
idea and aspect. It is essential for an independent person to enforce good ideas and provide the
relevant article. This results in managing a trust properly.

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Ability: This concern with the division of role and its performance. It is important for a person to
take responsibility for each cause so that appropriate trust in them could be facilitated. An able
person is more trustworthy in a frame so that appropriate outcome would be assessed.
Credibility: reliability is ones of a major pillar for managing the trust. If both people have
reliable in nature and credible towards each other then it influences maximum return.
20. after receiving trust money, what must you do?
Trust money is an amount which receives from a law practice in the course with the provision of
legal services. Once trust money gets receive then a person becomes liable to hold the property
and such tangible assets on their name. Thus, legal procurement of such product and service can
be facilitated easily. A financial manager needs to understand the phrase of trust money properly
so that they will be going to entitle a property properly, once such money receives then an
individual need to complete further process for managing and getting things. This results in
business to become competitive in nature and determine appropriate outcome (Ales, et. al.,
2018).
21. Explain the two requirement of computerized accounting systems set up?
Management accountings concentrate on making of useful report for external parties such as
public regulators and stockholders etc. As the requirement with generally accepted accounting
principal, on the other hand managerial accounting takes the company’s accounting data and
builds report for the internal and provides advice to the manager that helps them in decision
making and give ideas in accordance like how they can build and expand that company? So these
are the ways that they advice and help the company to built more efficiently. This information
are mainly based on the management’s data that needs and include in product cost analysis,
charts related to trends, managing of budgeting, breakeven charts and forecast so many things

Management Accounting 22
that will be very helpful for the company. This accounting system can help you in each
departments of a business that do include off – IT, human resource, finance, marketing, operation
and sales. With adding to using complex managerial accounting, financial data which do also
involve non- financial data which include order backlog, current sales information, cash on hand,
per day no. of sales call are attending, delivery deadline dates, payables, finished goods, aging
different level of finance receivables and current inventory level. These all information help the
company to grow more and help them to identify the small reason and problem where they are
lacking because it almost provide the very useful information from the business to the
forecasting (Jack & Sure, 2014).
22. What must you do after the each and every month regarding trust account?
A trust account is an ethical arrangement through this the third party that is having both the cash
and property is providing the profit to the party that can be a on a personal level or can be for a
group. Grantor or settler is known as the creator of this trust (Spacey, 2017). Main features of
this trust are- ownership, handling responsibilities, expenses information, tax information etc.
Things that is important to know are- beneficiary and beneficiaries, the person that is appointing
on the place of any trustee and those assets that we do transfer into any trust.
If we are naming our self a trustee then we have to select as a optional trustee if in some situation
there will any complication like death or disaster then this will be a complicated situation and
everything will hand over the excess as they have any legal title or anything (Yunhua & Jie,
2015). So we should have to very careful about each and everything that or trust should be
properly funded (Ruskin, 2016).

Management Accounting 23
23. Act ethically and complying with all statutory requirement in the company, what does
it mean to you and your organisation?
Statutory requirements, ethical code of practices and compliance are adopted in the organisation
to assist and ensure the department to understand the difference of what is right and what would
be wrong. It is applied the overall understanding of decision related to ethical code of conducts
and standards which are generally applied in accounting documents at all level of the department
such as business ethics, codes of conduct and professional for employees in then organisation.
All work has been defined the nature of the company and its legacy to comply with code of
conduct and business ethics within the organisation. Code of ethics are related to KPIs,
standards and codes applied in business in order to consider the behaviour, environment and
flexible working of environment to replace all negative vibes in working place (Furnham &
Gunter, 2015).
24. What we need to explain to our client while charging fee from them?
We should make them aware form the company’s policies and market competitive analysis,
when we are going to charge fee from our client, we need to tell them about the tabs and process
of the competency policy. It all about the market structure of the company which are related to
pre-project arrangement for how much money are charging from them according to which
facility. It is nature of considering your client about to consider decreasing your rates if the client
is someone that you actually enjoy working with. You could also think about offering lowering
rates to friends, family, or clients that have an awesome product or service that you’re a fan of
(Reddy, 2016).

Management Accounting 24
25. Brief of question 11-20:
In this question, it is concluded about all questions and their essence given in 11-20. In the
above statement, firstly the differences between manual vs. Electronics transaction has been
defined. It facilitates it meanings, nature in electronics and manual manner which shows
differences in the manner of speed, nature, characteristics and similarities. On the other side, it
describes about manual and client fund protected in such a way to describe current data
protection legislation in the issues of privacy and other matters. It has explained the quality and
process of how to disbursed funds and how it can be authorized and checked for overall accuracy
in order to prevent fraud and detection of relevant legislation. In the matter of compliance and
currency, it has determined about policies and system procedure in order to review compliance
and currency. It explains it needs in business to prepare and work for efficiency reading in all an
organisation in order to manage all activities. It further explains the work and duties of company
as per completing the requirement of auditing and financial statement and reporting process
within the organisation. An organisation works on various practices so that their associate's
abilities to perform different task become possible. Continuous Professional development is a
process which assists in managing documents of various skills and experience gained through
informally and formal manner. Such practices and aspects are beyond the training process and
assist an individual to apply experience and learn things properly in an effective manner. Further
it describes the five qualities of make up a trust in which is explained about integrity, strength,
ability, credibility and accuracy in order to shown reliable resources, medium in an organization
to show independent and relevant financial decision of the company in regards of makeup trust.
It also explains the reliability and relevancy of analysing reviewing trust money and finance, it

Management Accounting 25
explains about the person who handles it in the terms of financial manager and analyst of the
company. Financial managers are liable to handle the situation of managing getting things for the
betterment of the company (Jack & Suri, 2014).
26 complete a file note for the q6 above then another file note when the audit has to be
completed.
Completion of the process of file note for the q6:
In the audit engagement of file note for q6 are included the objective and scope for the company
auditing process, it include responsible of the auditor and management, indentifying the financial
engagement of financial report, based on framework of conceptual agreement for the
arrangement of financial statement of auditing in expected content of any report to be issued in
the sense of the any report issued in an expected elaboration regarding arrangement of auditing
report in the request of restrict wrong material and mis-happening related to arrangement and
adjustment of auditing process at the time of completion of audit (Reddy & Kamal, 2017). All
work h been defined the nature of the company and its legacy to comply with code of conduct
and business ethics within the organization (Stover, 2018). Code of ethics are related to KPIs,
standards and codes applied in business in order to consider the behavior, environment and
flexible working of environment to replace all negative vibes in working place (Skilton, et. al.,
2016).
Following process are their related to file note of q6 in the completion of audit process:
Identification of the financial reporting framework for the preparation of the financial statements;
–Expected form and content of any reports to be issued;
 Elaboration of the scope of the audit with reference to legislation;
 The form of any other communication of results of the audit engagement;

Management Accounting 26
 The fact that some material misstatements may not be detected;
 Arrangements regarding the planning and performance of the audit, including the
composition of the audit team;
 The expectation that management will provide written representations;
 The basis on which fees are computed and any billing arrangements;
 A request for management to acknowledge receipt of the audit engagement letter and to
agree to the terms of the engagement;
 Arrangements concerning the involvement of internal auditors and other staff of the
entity;
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