Question

In the situation that follows, does Jane have any responsibility to find out the legitimacy of the expenses she is processing or is her job to just pay the bill?

nu le An effective accounting information system has the ability to sort through the millions of things that happen in a company during an accounting cycle and capture only the business transactions that impact the accounting equation. Questions 1. What responsibility or role does the accountant have in this process? 2. Should information provided by management and other non-accounting personnel be assumed accurate or is it the accountant's responsibility to investigate each item submitted for legitimacy? 3. In the situation that follows, does Jane have any responsibility to find out the legitimacy of the expenses she is processing or is her job to just pay the bill? Below is an example of a situation where this would come into play Jane is the accounts payable clerk for ABC Corporation. One of her job duties is to process the travel expenses of the chief financial officer and pay the associated business credit card bill Jane has noticed lately that the CEO's expense reports are steadily increasing in amount and frequency. From receipts and other documentation that Jane processes, she suspects the CEO is running personal expenses through the company: however, she is not 100% sure.

Answer 1

Answer:

The role and responsibilities of an Accountant in accounting cycle and catching the business exchanges out of a huge number of activities:

i) Identify the exchanges: The accounting data are assembled from the first sources that is worried about the monetary information and value to the business. These unique sources are the business receipt or sales invoice, purchase charges, finance information, and so on.

ii) Analysis of the Accounting information: The accountant needs to examination the accounting information through the creation the Journal Entries and presenting them on record or ledger and adjusting of every single records.

iii) Summarization of the accounting entries: The accountant needs to make the outline of all the accounting entries so gathered of the essential information. The summary so confined is called Un adjusted Trial Balance.

iv) Collecting reports: The accountant needs to gather all the supporting and records of the accounting transactions which are required to demonstrate the exchange for audit purpose.

v) Bank Reconciliation: As all accounting transactions need to go through the bank or cash accounts at some point or another, so it will consistently the obligation or responsibility of an Accountant to keep the Bank reconciliation all together and all around counted.

vi) Finalization of the records: The accountant  needs to conclude the records by making the year end changes in accordance with the records and drafting the Income Statement, Statement of Stockholders' Equity, Balance Sheet and Statement of Cash flow.