You are the manager of an accounting department and would like to hire another managerial accountant to focus on internal accounting. The CEO is not convinced that a managing accountant position is needed. Prepare a 1-2 page memo for the CEO on the following:
- Explain the objectives and characteristics of an internal accounting system.
- Include an explanation of the importance of this information to the company.
- Include an explanation of ethics in business and the managerial accountant's role in upholding the code of ethics.
1. Explain the objectives and characteristics of an internal accounting system.
Internal accounting systems are useful to organizations in achieving their mission, vision, goals, and objectives; reviewing past performance and potential trends; and rewarding and evaluating administrative performances. The most significant characteristics of internal accounting systems are its suitability, its association with decision-making influences, its prospective orientation, its connection to measuring effectiveness and efficiency, and the reality that it is a "means to an end". (Williams et al, 2002).
The objectives are to convey that management is responsible for ensuring the internal accounting system is established, well controlled, maintained and adhered to by each department and individual. Also, to ...
The discussion of internal accounting systems is provided in a clearly formatted word document with 436 words and one APA formatted reference.