AUE3701 LATEST EXAM
PREP.
1
Unit Standard : Apply selected GRAP to periodic
accounting reporting principles – Danie van Zyl
Group 2: Municipal Accounting and Risk Management
Module 4: Risk Management, Internal Control Framework Design and
Audit Planning and Implementation 2015/01/18 1
A...
, Unit Standard 119348: Apply selected GRAP to periodic
accounting reporting principles – Danie van Zyl
Group 2: Municipal Accounting and Risk Management
Module 4: Risk Management, Internal Control Framework Design and
2015/01/18
Audit Planning and Implementation 1
A brief introductory discussion on accounting
and financial statements
Financial and Management Accounting
Financial Accounting
Provides information for external users
Is essentially subject to the law
Is subject to Generally Accepted Accounting
Practices
Must generate accurate and timely information
Emphasises the past
Looks at the operation as a whole
Primarily stands by itself
Is an end to itself
1
,Management Accounting
Provides information for internal users
Is not mandatory by law
Is not subject to Generally Accepted Accounting Practices
Emphasises relevance and flexibility of information.
Has more information on the future
Focuses on parts as well as the whole of the operation.
Draws heavily from other disciplines such as finance,
economics, and operations research.
Is a means to an end.
2015/01/18 4
ACCOUNTANCY – A DEFINITION:
“Accountancy is the process of
identifying, measuring, recording and
communicating economic/financial
transactions”.
Measurement is normally made in monetary terms from which
the Accountant prepares financial records – including “financial
statements” .
5
• ACCOUNTING RECORDS (VOUCHERS, STATEMENTS, CHEQUES, INVOICES ETC.)
• ACCOUNTING BOOKS/ LEDGERS
• ACCOUNTS CLASSIFICATION (CHART OF ACCOUNTS)
• ACCOUNTING PERIOD
• ACCOUNTING ENTITY
• ACCOUNTING STANDARDS
• ACCOUNTING POLICY
• ACCOUNTING SYSTEM
7
ACCOUNTING TRANSACTIONS – A
DEFINITION
Those single and predefined operational actions
or events which cause the movement of money,
and therefore the recording thereof in the
books/accounts of the organisation.
THE PROCESS
• monetary value linked transactions
• double entry posting (debits and credits) to books of
accounts
• trial balance – listing of all debit and credit balances and
ensuring these total to the same amount
• statement of financial performance - extraction of all
income and expenditure balances
• statement of financial position - extraction of all asset and
liability balances plus net balance of statement of financial
performance
3
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller Excellentstudyresources001. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $3.00. You're not tied to anything after your purchase.
