Who's responsible for the content of financial statements

Article Abstract:

Management produces the financial statements of publicly held companies, and auditors conduct an audit of the financial data and consult with management over any deficiencies uncovered. A survey of 77 presidents and CEOs of the top 1,000 businesses listed in Ward's Business Directory was conducted to ascertain their perceptions towards managers' and auditors' responsibility for the control of financial statements in the areas of the detection of fraud, the reasonableness of estimates, and the inadequacy of internal control. Survey results revealed that a substantial number of presidents and CEOs, almost 36% of respondents, believe that auditors have a responsibility equal to or greater than management in assuring the integrity financial statements, which indicates a lack of appreciation by management of its critical role in guarding a firm's assets.

Auditing, Surveys, Chief executive officers, Corporation reports, Company reports, Managerial accounting, Ward's Business Directory (Book)

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Materials variance analysis and JIT: a new approach

Article Abstract:

The effectivity of traditional variance analysis as integrated with just-in-time systems can be enhanced through certain modifications of the variance analysis method. The addition of a third variance, a raw material inventory variance, serves as the initial improvement. The addition of other columns that take into consideration finished goods inventory fluctuations and the quantity of filled sales orders will furthermore expand the functions of variance analysis. The extended approach of variance analysis will work beyond the basic evaluation of purchasing and production efficiency to include the evaluation of efficiency in the processing of materials into finished goods and the evaluaion of efficiency of the production of finished products relative to marketing and distribution supply.

Analysis of variance

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Meeting the challenge of Japanese management concepts

Article Abstract:

A survey of 61 firms in the electronics industry and automotive fields was conducted to ascertain whether US suppliers are adapting to the challenges of just-in-time (JIT) management concepts on the Japanese model. Twenty-one usable responses resulted. About one-third of the respondents who practice JIT report increased raw material inventories and work in process. The fact that almost half of the respondents reported increased finished goods inventories suggests that having JIT as a policy does not always mean that it can be fully implemented. Almost all the firms were able to adjust successfully to the JIT-oriented needs of suppliers, however.

Management, Japan, Corporations, Industrial management, Corporations, Japanese

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