Ethical Issues Related to Financial Reports (HSC SSCE Business Studies): Flashcards
📚Flashcards
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Practise the cards
10 cards from this deck
Creative accounting
Creative accounting
Manipulating financial info to show inaccurate favourable picture
Working capital formula
Working capital formula
Current assets minus current liabilities
Effect of overvalued inventory on working capital
Effect of overvalued inventory on working capital
Makes working capital appear artificially high
Directors' duty to act in good faith means
Directors' duty to act in good faith means
Act honestly in company's best interests, not personal gain
Large company criteria for external audit (meet 2 of 3)
Large company criteria for external audit (meet 2 of 3)
25m assets, or 100+ employees
What is an audit
What is an audit
Independent check of accuracy of financial records & procedures
Three types of audits
Three types of audits
Internal, management, and external audits
IFRS stands for
IFRS stands for
International Financial Reporting Standards
Minimum period to keep financial records
Minimum period to keep financial records
Five years
Proposed criminal cash payment limit
Proposed criminal cash payment limit
$10,000 or more