Question

In a professional relevance essay, draw connections between the accounting principles that you demonstrated in Final Project I and their specific, practical
applications within your own professional practice.
Specifically, you must address the critical elements listed below. Most of the critical elements align with a particular course outcome (shown in brackets).
I. Introduction: Briefly describe your current or aspiring professional identity, including the field in which you work or hope to work. To what extent does
(or will) financial accounting play a role in your day-to-day professional life? [ACC-201-01]
II. Draw Connections
A. In the first part of your final pro77
ject, you recorded various transactions in the life of a business. Now, consider your current or future professional
life: What sort of transactions would you encounter in your field? Describe at least three using specific details. [ACC-201-01]
B. Analyze the relationship between those transactions and the success of your current or future business. For example, how would each
transaction impact the income statement and balance sheet of your company? Illustrate
your claims using specific examples. [ACC-201-01]

Apply to a Scenario: Imagine that you are the new department manager of a corporation within your chosen field: You discover that your predecessor
had been using the cash basis of accounting, which has resulted in many errors and misinformation. What measures would you take to remediate the
issue? Propose a high-level plan to implement a proper accounting system for your department using specific principles discussed in the course. For
example, which financial statements would you investigate first? What sort of internal controls would you implement? [ACC-201-01]

Answer 1

I. Introduction: Briefly describe your current or aspiring professional identity, including the field in which you work or hope to work. To what extent does
(or will) financial accounting play a role in your day-to-day professional life? and draw connections ?

Ans- Currently i am a chartered accountant (CA) as well as MBA. But for now, i am practicing the chartered accountancy. Well a CA itself is a brand. In simple language you can call him auditor who signs the balance sheet by giving his opinion. Thus the CA plays a very important role in day to day working of not only the companies, but also an individual, HUF or any assessee.

He Audits the company financials, file income tax returns, advises on various matters including legal matters of company and tax laws.

Financial accounting plays a very important role. What CA does is all about financial accounting. He not only advises how to make financial statements, but also advises on various other matters. He checks and advises company on correct usages of IFRS, tax treatments, timely payment of advances taxes as well as GST and a lot of other things .
Thus Financial accounting can be said to be the basic or main area in the field of a CA.

A. In the first part of your final project, you recorded various transactions in the life of a business. Now, consider your current or future professional life: What sort of transactions would you encounter in your field? Describe at least three using specific details.

Ans - There are many transaction which can be faced by a CA in his own field.

1. Accounting of the transactions - a CA has to maintain the books of accounts as per the Relevant standards and GAAP keeping in mind the correct use as he is the highest qualifier for such GAAP. A CA maintains all the books of accounts and at the year end make the Financial statements.

2. Payment of taxes - A CA is required to pay taxes as per the tax rates prevailing by the tax laws. He is required to correctly compute the tax and pay such tax timely. Thus this is the 2nd main transaction a CA faces in his own professional life.

3. Staffing, Planning etc - A CA has to properly plan, say audit, before going on an audit. Thus he requires a proper and specialised staff which can help him in auditing the books of the required company. thus as the company plans there business and does the staffing and other procedures, a CA also plans his audits before going on an audit by planning as to what he will require and what quality and number of staff requires.

Analyze the relationship between those transactions and the success of your current or future business. For example, how would each transaction impact the income statement and balance sheet of your company? Illustrate your claims using specific examples.

Ans - While recording the transactions properly and correctly , it will help me in bringing out the true profits i earned rather than based on approximation.For example - if i buy a laptop, it will be my asset and thus i can claim such expenditure in my books so that tax on such amount is not paid which will helm me in paying any excess tax to the authorities. Also recording of any fees received will help me in getting a proper earning schedule.

Proper payment of taxes - It will help in from getting any scrutiny notices from the authorities by submitting the proper amount of fees and payment of correct amount of tax to the authorities. Thus it will not only boost my professional competency by also people will be recognizing me as such. Also it will help me in following the codes of ethics a CA must follow.

Staffing and planning etc - A proper planning will help in figuring out what all equipments i will be required conduct and audit. Also it will help in hiring or deploying the staff and thus helping me in having or hiring the required amount of staff and thus cutting the un necessary cost and increasing the profits .

Imagine that you are the new department manager of a corporation within your chosen field: You discover that your predecessor had been using the cash basis of accounting, which has resulted in many errors and misinformation. What measures would you take to remediate the issue? Propose a high-level plan to implement a proper accounting system for your department using specific principles discussed in the course. For example, which financial statements would you investigate first? What sort of internal controls would you implement?

Ans - Accrual accounting is the method now a days which is most common and used by the most of the business. Cash accounting almost is at the verge of ending. Thus many a time, various issues or errors may occur because of cash system.

Since as a new joinee, i found various issues and errors because of the cash system of accounting. Thus firstly, i will match the cash balance as well as bank balance. After having it verified, then rather than initially focussing on rectifing previous entries, i will making entries in accrual way and by the time, will pick line by line heads and will start making corrections in the entries to make it on accrual system. Firstly the cash verification is done so that the other accounting will be matched with the cash balances.

Now since i have to propose a high level plan to implement a proper accounting system, thus such system will be based on the relevant accounting principles such as accrual system, matching concept, Following correct IFRS etc. Thus to over come with such big issue, a change cannot be suddenly be implemented. It requires proper planning, time, training as well as the proper knowledge. Thus such system will be implemented on the parallel basis, i.e., what is the current system will be followed and parallel to it, the new system will be implemented. Also in the mean time, proper knowledge of accounting will be given to the required persons along with the use of such softwares on which such accounting will be done.

A parallel system will be beneficial as it will not discourage the current working, but will help the staff in slowly adopting the new system and any more requirements can be added or removed and the initial problems in implementing can be solved.

Also such internal controls must be implemented so that all the things can be done timely and with proper authorization, such as payment of taxes, generation of bills, filing of returns etc.