A Conceptual Framework for Accounting and Financial Integrity
I. Fundamental Concepts and Scope of Accounting
Accounting (المحاسبه) is defined as the systematic discipline dedicated to the recording and summarizing (تسجيل تلخيص) of all company transactions and business deals (المعاملات والصفقات). These transactions include essential activities such as sales (المبيعات) and purchases (المشتريات). The data derived from these organized processes is subsequently compiled and presented in the format of financial statements (قوائم مالية).
II. Key Specializations within Accounting
The field of accounting is categorized into distinct branches based on the audience served and the primary function performed:
1. Financial Accounting (المحاسبة المالية)
Financial accounting encompasses bookkeeping (ضبط الحسابات), which involves the daily recording of transactions. Its central purpose is the preparation of financial statements (تحضير القوائم المالية). These statements are prepared primarily for external stakeholders, including:
• Creditors/Debtors (الدائنون), defined as individuals or organized entities (هيئات منظمات) that have advanced capital (loaned money) to the company.
2. Management Accounting (محاسبة ادارية)
Management accounting focuses on the internal application of financial data. This branch involves the utilization of accounting data by business managers (مدراء الاعمال) to formulate strategic business plans (خطط عمل) and facilitate decision-making (صنع قرارات) processes.
III. Oversight, Auditing, and Financial Integrity
The reliability of financial records is maintained through the practice of auditing and adherence to stringent reporting standards.
Auditing (التدقيق)
Auditing is the process of verifying the correctness and accuracy (صحة وضبط) of recorded transactions (التسجيلات). The necessity for auditing stems from the need to confirm whether any errors (أخطاء) or instances of fraud or scams (احتيال نصب واحتيال) have occurred. This is critical, particularly if the company is suspected of providing false information (معلومات خاطئة).
Internal Auditing (التدقيق الداخلي) is a procedure conducted internally by auditors or accountants who belong to (ينتمون الى) the company itself. A significant function of internal auditing is to enable the company to actively avoid what is known as Creative Accounting (المحاسبة الابداعي).
IV. Ethical Challenges: Creative Accounting
Creative Accounting (المحاسبة الابداعي) represents an ethical breach in financial reporting. It is defined as the recording of transactions and values using methods that ultimately generate false information or inaccurate results. A specific illustration of this is the presentation of fabricated values for profits (قيم مزورة للارباح).
In contexts such as Britain, company financial statements are required to provide a true and fair view (صورة صحيحة وصورة منطقية) of the firm's actual current financial status (الحالة المالية للشركة) to safeguard integrity.
A particular form of this practice is known as Off-Balance Sheet Accounting (محاسبة خارج الميزانية العمومية), which is the subject of advanced study in the sources.
V. Global Context and Regulatory Environment
The standards and laws governing accounting and finance exhibit significant international variation:
Financing Structures
• In most English-speaking countries, companies are financed by shareholders (ملكي الاسهم), who may be either individuals or financial institutions.
Regulatory Differences
The laws, standards (المعايير والقوانين), and the methodology for preparing accounts differ from country to country. Additionally, tax authorities (مصلحة الضرائب) are essential stakeholders whose requirements must be addressed during the preparation of accounts.
VI. Application and Assessment Activities
The material includes two exercises designed for application and assessment:
1. Exercise 1 (Job Functions): This exercise requires the identification of specific accounting roles based on five descriptions detailing responsibilities such as recording purchases and sales, auditing, analyzing sales figures, preparing the annual balance sheet (الميزانية العمومية السنوية), and checking accounts before presentation to external auditors (المدققون الخارجيون).
2. Exercise 2 (Creative Accounting Analysis): This is a mandatory homework assignment (واجب), due before April 8th. It requires students to analyze an email concerning Creative Accounting and Off-Balance Sheet Accounting. The objective is to understand the general meaning and objective (المعنى العام والمغزى العام) of the text and then determine the veracity (True or False) of six provided statements related to the text, covering concepts like leasing, the scope of creative accounting, the relationship between large profits and taxes, and professional consensus on creative accounting.
Post a Comment