Who uses forensic accountants?

forensics-accounting
Forensic accounting financial investigative specialists work with financial information for the purpose of conveying complicated issues in a manner that others can easily understand.   While some forensic accountants and forensic accounting specialists are engaged in the public practice of forensic examination, others work in private industry for such entities as banks and insurance companies or governmental entities such as sheriff and police departments, the Federal Bureau of Investigation (FBI), and the Internal Revenue Service (IRS).
The occupational fraud committed by employees usually involves the theft of assets.  Embezzlement has been the most often committed fraud for the last 30 years.  Employees may be involved in kickback schemes, identity theft, or conversion of corporate assets for personal use.  The forensic accountant couples observation of the suspected employees with physical examination of assets, invigilation, inspection of documents, and interviews of those involved.  Experience on these types of engagements enables the forensic accountant to offer suggestions as to internal controls that owners could implement to reduce the likelihood of fraud.
At times, the forensic accountant may be hired by attorneys to investigate the financial trail of persons suspected of engaging in criminal activity.  Information provided by the forensic accountant may be the most effective way of obtaining convictions.  The forensic accountant may also be engaged by bankruptcy court when submitted financial information is suspect or if employees (including managers) are suspected of taking assets.
Opportunities for qualified forensic accounting professionals abound in private companies.  CEOs must now certify that their financial statements are faithful representations of the financial position and results of operations of their companies and rely more heavily on internal controls to detect any misstatement that would otherwise be contained in these financials.
In addition to these activities, forensic accountants may be asked to determine the amount of the loss sustained by victims, testify in court as an expert witness and assist in the preparation of visual aids and written summaries for use in court.

Whose Line Is It Anyway? – The Accountant Song

Whose Line Is It Anyway? – Accountant Songs
DREW: Welcome back to “Whose Line is it Anyway?”, the show where everything
is made up and the points don’t matter. Uh, I don’t know how many points to
award because during the commercial I was taking off my pants. (Dances in
his seat. Colin gives him the thumbs-up.) That’s right. OK, now we go on to
a game called “Greatest Hits”. This is for Colin, Ryan, and Wayne, with the
help of Laura Hall on the keyboards. Laura Hall. We just found her outside
before the show. Can you believe it? Uh, Colin and Ryan are, uh, TV
voice-over people, and you’re gonna be talking about the latest compilation
album, and Wayne, you’re gonna sing snippets of the songs. What we need from
the audience is the, uh, a kind of profession you wouldn’t normally sing
songs about… Uh… Okay, I heard a lot of… I heard a lot of
“accounting”. Don’t know how you’re gonna do it, but good luck. Uh, the name
of your album is “Songs of Accounting”.
RYAN: Hi! Sorry to interrupt. We’ll be back to the 24-hour Drew Carey
Network in just a moment. But first we’ve got a special offer for you.
COLIN: You know, many people thing accountants are boring.
RYAN: Isn’t it?
COLIN: They are!
(Ryan realizes his mistake.)
COLIN: But out of great boredom comes great songs, and we’ve come up with a
twenty-five-thousand-hour CD filled with songs of accounting!
RYAN: That’s right, we have, Colin. Many different songs. Who for – could
forget that disco favorite, “D-I-V-O-R-C-E I-R-S”?
(Disco music plays. Wayne “spells” out the letters, a la “YMCA”.)
WAYNE: Get out! Get out!
Listen to me, here’s a fact you will believe!
You cheated on me, now I want your ass to leave!
That’s right, none of this is funny!
Just pack your bags, and give me all your money!
I said, D-I-V-O-R-C-E I-R-Ssss, yeah,
I said, D-I-V-O-R-C-E I-R-Ssss!
(Strikes Travolta pose, then blows on fingers like they’re smoking guns)
RYAN: For me, that brings back memories of big pants and shoes with fish in
the heels.
COLIN: Enough about yesterday! Every song a hit, every hit a smack! But you
know what? I even have a song on this album! Remember that?
RYAN: You do not!
COLIN: But we don’t have time to listen to it! What we do have time to
listen to is that great song from the swing era, “Your Love has Bankrupted
Me.”
(swing music plays. Wayne starts snapping his fingers)
WAYNE: Because I would bet seven,
Hoping that your love would take me all the way to Heaven.
But I guess when you gamble you’ve got no luck.
Your love has left me bankrupt.
Oh, chap-ter eleven’s of the hot what I got it’s hot,
Chap-ter eleven’s of the hot what I got.
Oh, you got you, I got me, ain’t got nobody, see,
‘Cause chapter eleven’s what I am.
Because your love has left me bankrupt!
Why dontcha get out of here? Oh yeah!
DREW: (applauding) Man!
RYAN: Hey, Colin!
COLIN: Yes, Ryan?
RYAN: How much would you pay for a 2-CD set like this?
COLIN: Oh, I don’t know… 39 dollars?
RYAN: Uh… Unfortunately, it’s $69.95!
COLIN: But, I was talking 39 dollars in a foreign currency which doesn’t…
quite…
RYAN & COLIN: Add up to more than that!
RYAN: All because the hits keep on coming! Who could ever forget that early
Rock and Roll favorite, “Deduct This”?
(Rock N’ Roll piano music. Wayne imitates Little Richard, mimes playing a
piano.)
WAYNE: Whoo!
Here’s something I know you see!
You better better save all your receipts!
Because you better save ’em,
Because you’ll do the best! Whoo!
Because if you don’t, you save your receipts,
An act they can’t deduct, you better believe me!
Because, IRS, deduct this! Whooo!
Deduct! You’re screwed! Don’t save ’em, now you’re sued!
Oh, yeah! Yeah, yeah, oh yeah! Whoo!
Baby, you better deduct this! Whooo-ooo!

Transcription credits: http://www.geocities.com/mstiescott/103.html

Oh don’t we all love accounting? That’s why we come to school!

"…We all love accounting – it’s the reason we come to school,
Dear old accounting, there’s nothing else quite as cool! "

Event: CPA S’pore Powwow: The Shifting Power Balance: Is Gender the Issue?

The Institute of Certified Public Accountants of Singapore presents:

CPA S’pore Powwow: The Shifting Power Balance: Is Gender the Issue?

 

CPA Singapore Powwow

 

 

 

 

 

 

 


Description: 

Despite global support for the fundamental rights of women and men to participate equally in decision-making, women are still poorly represented at the higher levels of decision-making in both public and private sectors. The 21st century corporate world needs to recognise that the optimisation of women’s talents will boost business performance. 

The topic will focus on the economic importance of women – how they are becoming central to labour market solutions to the challenges of an ageing workforce, falling birth rates and skill shortages. And what can be done for women to fulfill their potential. 

The forum brings together a panel of distinguished leaders to exchange views on the topic and share their ideas with the business community. 

Guest-of-honour and Panelist: 

Mrs Lim Hwee Hua 
Minister, Prime Minister’s Office 
Second Minister for Finance and Transport
 

Panelists: 

Mr Gerard Ee 
Vice-President, ICPAS 
Chairman of National Kidney Foundation
 

Mr Declan O’Sullivan 
Director 
Kerry Consulting Pte Ltd
 

Ms Saw Phaik Hwa 
President & Chief Executive Officer 
SMRT Corporation Ltd
 

Moderator: 

Ms Melissa Hyak 
Presenter 
Channel NewsAsia
 

Registration is now open. Please visit the ICPAS website for further details!

Accounting Degree through NTU, NUS or SMU?

Jump Grade’s Guide to Accountancy Programmes in Singapore Universities*singapore-universities-accountancy-programme

NTU

Bachelor of Accountancy Program

NUS

BAA (Accountancy) Programme

SIM

Bachelor of Business (Accounting)

SMU

Bachelor of Accountancy Programme

Direct Honors

Yes

No

Yes

Double Degrees

Yes

Yes

N.A

Yes

Entry Grade Requirements

Grade Profile

A Level

AAA/A or AAB/B

(3H2/1H1)

90th Percentile and 10th Percentile respectively

Poly Graduates

GPA 3.71 or 3.95

90th Percentile and 10th Percentile respectively

Grade Profile

A Level

AAA/A or AAB/B

(3H2/1H1)

90th Percentile and 10th Percentile respectively

Poly Graduates

GPA 3.64 or 3.95

90th Percentile and 10th Percentile respectively

Two GCE ‘A’ / H2 level passes with a pass in either Knowledge & Inquiry or General Paper, or English at ‘O’ level

Non-Business Diplomas from any of the polytechnics

Grade Profile

A Level

AAA/A or ABB/A

(3H2/1H1)

90th Percentile and 10th Percentile respectively

Poly Graduates

GPA 3.60 or 3.92

90th Percentile and 10th Percentile respectively

Cost Duration

3 years

3.5 – 4 years

2 – 3.5 years

3 – 4years

Cost Fees*

S$6,360 per year

S$7,000 per year

A’Levels (3.5yrs)

S$31,843.20

S$9,130 per year

Non – Business Diploma (3 yrs)

S$23,882.40

Business & Related Diploma (2yrs)

S$16,991.60

Scholarships

– Big 4 Accounting Firms

– Government Scholarships

– NTU internal Scholarships

– Big 4 Accounting Firms

– Government Scholarships

– NUS internal Scholarships

– SIM internal Scholarships

– Big 4 Accounting Firms

– Government Scholarships

– SMU internal Scholarships

Accreditations

ACRA

AACSB

CIMA

CPA Australia

EQUIS

ICAA

ICAEW

ICPAS

ACRA

CPA Australia

ICPAS

CPA Australia

ACRA

CPA Australia

ICAA

ICAEW

ICPAS

Exchange Program

Yes

Yes

No information

Yes

Internship opportunities

Local and Abroad

Local and Abroad

Not Required

Local and Abroad

Initials on graduation

B Acc

B BA (Acc)

BBus (Acc) RMIT

B Acc

Career Prospects

Direct qualification to be an auditor in Singapore

Yes

Yes

As an equivalent

Yes

Mean Starting Salaries

$2,601

$2,929

Data not available

$2,995

Long working hours

Included

Included

Included

Included

*rates quoted here are correct as at date of post and are subject to change from time to time. Fees quoted in the chart are for the AY 2009/10 intake. Male undergraduates who went through National Service may pay lesser than the quoted amount as their fees are locked in the year they received acceptance of placement in the University.

The annual subsidized fees exclude GST which is separately funded by the Ministry of Education. Hence, students paying subsidized fees do not have to pay GST. Course fees do not include living and miscellaneous expenses. Varsities may also charge for additional modules taken (for example, during the term breaks). Please check the universities’ websites for more/updated details.

Update (6th November 2009): It is a pre-requisite for someone who wish to practise in Singapore to be registered as a non-practising member with ICPAS.

Information Sources:

Salaries

Ministry of Manpower’s Website:

Employment and Monthly Gross Starting Salary of University Graduates in Full-Time Permanent Employment by Degree, 2007

http://www.mom.gov.sg/publish/etc/medialib/mom_library/mrsd/row_2007.Par.54570.File.tmp/2007Wages_table11.xls

Course Fees

NTU : http://admissions.ntu.edu.sg/undergraduate/Pages/TuitionFee.aspx

NUS : http://www.nus.edu.sg/registrar/edu/UG/fees.html

SIM: http://www1.sim.edu.sg/sge/pub/gen/sge_pub_gen_content.cfm?mnuid=157&ID=117

SMU :http://www.smu.edu.sg/financial/fees/index.asp

Admission Criteria

NTU: http://www.ntu.edu.sg/oad2/pdfs/COP.pdf

NUS: http://bschool.nus.edu.sg/NUSBBA/UndergraduateDegrees/BBAAccountancyProgramme/Curriculum/tabid/709/Default.aspx#2

http://www.nus.edu.sg/oam/gradeprofile/sprogramme-igp.html

SIM: http://www1.sim.edu.sg/sge/pub/gen/sge_pub_gen_content.cfm?mnuid=157&ID=117

SMU:

http://asia2.digitalflip.com/a1/fdm/fvxpress.html

Abbreviations

ACRA – Accounting and Corporate Regulatory Authority

AACSB – Association to Advance Collegiate Schools of Business

CIMA -Chartered Institute of Management Accountants

CPA Australia – Certified Practising Accountant Australia

EQUIS – European Quality Improvement System

ICAA – Institute of Chartered Accountants in Australia

ICAEW- Institute of Chartered Accountants in England and Wales

ICPAS- Institute of Chartered Public Accountants Singapore

All information correct as of date of publishing.

Download Comparison Chart in PDF here !


Difference between Carriage Inwards and Carriage Outwards?

 

carriage inwards or outwards Carriage refers to the costs of transporting goods to and from the firm. In the past, the purchase of goods would often result in two charges – the cost of the goods purchased and the cost of having them delivered to the business premises.

From the buyer’s point of view, the delivery charge would he referred to as “carriage inwards”. Any such carriage charges should be debited to the carriage inwards account in the general ledger.

The carriage inwards account is written off to the trading account at the end of the accounting period.

When the buyer sells the goods to his customer, he incurs further delivery charges. This cost is referred to as ‘carriage outwards”.  This costs are debited to the carriage outwards account in the general ledger.

Any carriage outwards charges are usually included in an item called ‘selling and distribution costs”.   Since this cost is incurred after the goods have been made ready for sale, the account is written off to the profit and loss account at the end of the accounting period.

Each type of carriage will be an expense and therefore will have a debit balance in the trial balance. However, these will appear in different sections of the trading and profit and loss account.

Accounting Treatment of Carriage Inwards and Carriage Outwards

 

Carriage Outwards 

Journal  Entry for Carriage Inwards:

Debit   Carriage Inwards

Credit    Bank

Journal  Entry for Carriage Outwards:

Debit   Carriage Outwards

Credit    Bank

Treatment in Trading, Profit and Loss Accounts:

Carriage inwards Trading account expense
Carriage outwards Profit & loss account expense

Summary:

Carriage inwards is connected with the cost of getting goods into the business and ready for sale. As a result, it will be added on in the calculation for the cost of goods sold. Carriage outwards does not have anything to do with the cost of getting goods into saleable condition. Therefore it will appear with all the other overhead expenses and the profit and loss account.

Good to know:

Nowadays, the price quoted for goods being purchased will usually be inclusive of any delivery charge, and so a separate charge for carriage inwards (or outwards) is not very common. In cases where separate carriage inwards charges are incurred, the cost should be added on to the cost of purchases in the trading account. Consequently, a proportion of carriage inwards charges should be added to the purchase cost when determining the cost of closing stock.

 

Image courtesy of dok1 and Batman Comic Generator

What is the Difference between Sole Proprietorships, Partnerships and Limited Liability Companies?

Fish Soup @ Geylang East

Fish Soup @ Geylang East by kerfern

Sole Proprietorship

A sole-proprietor is a person who owns a sole-proprietorship business that is registered with the Accounting and Corporate Regulatory Authority (ACRA). A self-employed person is a person who earns a living by carrying on a trade, business, profession or vocation. A sole-proprietor/self-employed person do not report to a boss, because he is his your own boss. The income that he earns is considered business profits, not salary.  

Characteristics of Sole Proprietorship: 

  • Owned by one person or one company.  
  • A sole-proprietorship is not a legal entity (i.e. it cannot sue or be sued in its own name and it cannot own or hold any property). 
  • Profits are taxed at personal income tax rates. 

Some business owners choose to create partnerships or limited liability companies instead of a corporation. A partnership can also be called a firm. This refers to an association of a group of individuals working together in a business or professional practice.

Singapore Business District night view

Singapore Business District night view by *etoile

 

While corporations have rigid rules about how they are structured, partnerships and limited liability companies allow the division of management authority, profit sharing and ownership rights among the owners to be very flexible.

Partnerships fall into two categories. General partners are subject to unlimited liability. If a business can’t pay its debts, its creditors can demand payment from the general partners’ personal assets. General partners have the authority and responsibility to manage the business. They’re analogous to the president  and other officers of a corporation.

 

Limited partners escape the unlimited liability that the general partners have. They are not responsible as individuals, for the liabilities of the partnership. These are junior partners who have ownership rights to the profits of the business, but they don’t generally participate in the high-level management of the business. A partnership must have one or more general partners.

A limited liability company (LLC) is becoming more prevalent among smaller businesses. An LLC is like a corporation regarding limited liability and it’s like a partnership regarding the flexibility of dividing profit among the owners. Its advantage over other types of ownership is its flexibility in how profit and management authority are determined.

This can have a downside. The owners must enter into very detailed agreements about how the profits and management responsibilities are divided. It can get very complicated and generally requires the services of a lawyer to draw up the agreement.

A partnership or LLC agreement specifies how profits will be divided among the owners. While stockholders of a corporation receive a share of profit that’s directly related to how many shares they own, a partnership or LLC does not have to divide profit according to how much each partner invested. Invested capital is only of the factors that are used in allocating and distributing profits.

Registering a business in Singapore is easy:

http://www.business.gov.sg/EN/StartingUp/RegisterYourBusiness/

How is accounting used in business?

2409490917_7e4acf91b7_o1-300x214It might seem obvious, but in managing a business, it’s important to understand how the business makes a profit. A company needs a good business model and a good profit model.  A business sells products or services and earns a certain amount of margin on each unit sold. The number of units sold is the sales volume during the reporting period. The business subtracts the amount of fixed expenses for the period, which gives them the operating profit before interest and income tax.

It’s important not to confuse profit with cash flow. Profit equals sales revenue minus expenses. A business manager shouldn’t assume that sales revenue equals cash inflow and that expenses equal cash outflows. In recording sales revenue, cash or another asset is increased. The asset accounts receivable is increased in recording revenue for sales made on credit. Many expenses are recorded by decreasing an asset other than cash. For example, cost of goods sold is recorded with a decrease to the inventory asset and depreciation expense is recorded with a decrease to the book value of fixed assets. Also, some expenses are recorded with an increase in the accounts payable liability or an increase in the accrued expenses payable liability.

Remember that some budgeting is better than none. Budgeting provides important advantages, like understanding the profit dynamics and the financial structure of the business. It also helps for planning for changes in the upcoming reporting period. Budgeting forces a business manager to focus on the factors that need to be improved to increase profit.  A well-designed management profit and loss report provides the essential framework for budgeting profit. It’s always a good idea to look ahead to the coming year. If nothing else, at least plug the numbers in your profit report for sales volume, sales prices, product costs and other expense and see how your projected profit looks for the coming year.

What does an audit report contain?

 

 

reports

Most audit reports on financial statements give the business a clean bill of health, or a clean opinion. At the other end of the spectrum, the auditor may state that the financial statements are misleading and should not be relied upon. This negative audit report is called an adverse opinion. That’s the big stick that auditors carry. They have the power to give a company’s financial statements an adverse opinion and no business wants that. The threat of an adverse opinion almost always motivates a business to give way to the auditor and change its accounting or disclosure in order to avoid getting the kiss of death of an adverse opinion. An adverse audit opinion says that the financial statements of the business are misleading. The SEC does not tolerate adverse opinions by auditors of public businesses; it would suspend trading in a company’s stock share if the company received an adverse opinion from its CPA auditor.

 

One modification to an auditor’s report is very serious – when the CPA firm says that it has substantial doubts about the capability of the business to continue as a going concern. A going concern is a business that has sufficient financial wherewithal and momentum to continue it normal operations into the foreseeable future and would be able to absorb a bad turn of events without having to default on its liabilities. A going concern does not face an imminent financial crisis or any pressing financial emergency. A business could be under some financial distress but overall still be judged a going concern. Unless there is evidence to the contrary, the CPA auditor assumes that the business is a going concern. If an auditor has serious concerns about whether the business is a going concern, these doubts are spelled out in the auditor’s report.

What is acid test ratio and ROA ratio?

 

numbersInvestors calculate the acid test ratio, also known as the quick ratio or the pounce ratio. This ratio excludes inventory and prepaid expenses, which the current ratio includes, and it limits assets to cash and items that the business can quickly convert to cash. This limited category of assets is known as quick or liquid assets. The acid-text ratio is calculated by dividing the liquid assets by the total current liabilities. 

 

This ratio is also known as the pounce ratio to emphasize that you’re calculating for a worst-case scenario, where the business’s creditors could pounce on the business and demand quick payment of the business’s liabilities. Short term creditors do not have the right to demand immediate payment, except in unusual circumstances. This ratio is a conservative way to look at a business’s capability to pay its short-term liabilities.

 

One factor that affects the bottom-line profitability of a business is whether it uses debt to its advantage. A business may realize a financial leverage gain, meaning it earns more profit on the money it has borrowed than the interest paid for the use of the borrowed money. A good part of a business’s net income for the year may be due to financial leverage. The ROA ratio is determined by dividing the earnings before interest and income tax (EBIT) by the net operating assets. 

 

An investor compares the ROA with the interest rate at which the corporation borrowed money. If a business’s ROA is 14 percent and the interest rate on its debt is 8 percent, the business’s net gain on its capital is 6 percent more than what it’s paying in interest. 

 

ROA is a useful ratio for interpreting profit performance, aside from determining financial gain or loss. ROA is called a capital utilization test that measures how profit before interest and income tax was earned on the total capital employed by the business.