Describe the application of policies and procedures to managing accounting information(150-
180 words)
Solution
ANSWER:
Managing accounting information deals specifically with the integrity of internal financial
information and the accuracy of financial reports given to outsiders. With proper application of
policies and procedures a business can improve both the quality and efficiency of the financial
reporting function. Consistency of application; correct accounting treatment; streamlining
decision processes and efficient internal control can help in improving the organizational
performance in myriad ways. This can be achieved with a proper cash control, separation of
duties, audits and information security. Store the copies of all cash register tapes, invoices,
receipts, cancelled checks and any other documentation that relates to the cash transactions. The
accounting process and its policies and procedures should be communicated to all affected
parties through meetings, training, or other types of communication or events. Establishing
effective accounting policies and procedures early in the business helps to create a culture of
ethical financial management. Thus will help in creating a “trustworthy image” of the: financial
position, assets, liabilities and of the represented performance..
Describe the application of policies and procedures to managing acco.pdf
1. Describe the application of policies and procedures to managing accounting information(150-
180 words)
Solution
ANSWER:
Managing accounting information deals specifically with the integrity of internal financial
information and the accuracy of financial reports given to outsiders. With proper application of
policies and procedures a business can improve both the quality and efficiency of the financial
reporting function. Consistency of application; correct accounting treatment; streamlining
decision processes and efficient internal control can help in improving the organizational
performance in myriad ways. This can be achieved with a proper cash control, separation of
duties, audits and information security. Store the copies of all cash register tapes, invoices,
receipts, cancelled checks and any other documentation that relates to the cash transactions. The
accounting process and its policies and procedures should be communicated to all affected
parties through meetings, training, or other types of communication or events. Establishing
effective accounting policies and procedures early in the business helps to create a culture of
ethical financial management. Thus will help in creating a “trustworthy image” of the: financial
position, assets, liabilities and of the represented performance.
