Question

What responsibility or role does the accountant have in this process?

Cenu li. 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 o ne of her job dutie 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 et

Answer 1

The role and responsibilities of an Accountant in accounting cycle and capturing the business transactions out of millions of activities:

1) Identify the transactions: The accounting information are gathered from the original sources that is concerned with the financial data and value to the business. These original sources are the sales invoice, purchase bills, payroll data, etc.

2) Analysis of the Accounting data: The accountant has to analysis the accounting data through the making the Journal Entries and posting them to ledger and balancing of each and every accounts.

3) Summarization of the accounting entries: The accountant has to make the summary of all the accounting entries so collected of the primary data. The summary so framed is called Unadjusted Trial Balance.

4) Collecting documents: The accountant has to collect all the supporting and documents of the accounting transactions which are required to prove the transaction for audit purpose.

5) Bank Reconciliation: As all accounting transactions have to pass through the bank or cash accounts sooner or later, so it will always the responsibility of an Accountant to keep the Bank reconciliation in order and well tallied.

6) Finalization of the accounts: The accountant has to finalise the accounts by making the year end adjustments to the accounts and drafting the Income Statement, Statement of Stockholders’ Equity, Balance Sheet and Statement of Cash flow.

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