The Function of Management Accounting in a Law Firm

1.0 Introduction Management accounting is the application of professional knowledge and skill in the preparation of accounting information in such a way as to control the operations of an undertaking. It is the presentation of accounting information in such a way as to assist management in the creation of policy for the day-to-day operation of an undertaking as it provides information needed by managers to determine how resources should be obtained and used. It includes the methods and concepts necessary for effective planning in order to be able to choose from alternative business decisions. This term paper is concerned with how management accounting discipline has been used in the law firm of Messrs Majanja Luseno Advocates,†¦show more content†¦Management is able to make assessment of quality of personnel, quality of customers e.t.c. and this information will in turn be made use of by the management for the formulating of its policies and programs. vii. Decision making - Tactical and strategic decisions are taken by the management for day-to-day functioning of the organization. Decision such as expand, own or lease or hire, discontinuance of a department, modification and diversification of business, merge or not to merge are crucial ones that can only be implemented with management accounting techniques. The presentation of accounting information in a condensed and lucid form like funds flow statements, help management in drawing suitable inferences for decision making. viii. Performance appraisal - Budgetary control and standard costing help management in evaluating the performance of different departments, centers, persons e.t.c. ix. Organizing - The human and non-human resources in the Firm are analyzed and measured. The ratio of total profits as a percentage of net sales, capital employed and partner’s funds judge efficiency. Management accounting techniques like standard costing and internal audit enable management to examine each department separately. x. Motivation - The setting of goals, planning and the measurement of performance in the Firm increases its effectiveness therebyShow MoreRelatedManagement Planning Paper on Arthur Andersen1221 Words   |  5 PagesRunning head: Management Planning Paper on Arthur Andersen Management Planning Paper on Arthur Andersen In 1913, the company Arthur Andersen started by Arthur Andersen and Clarence Delany by the name of Andersen, Delany, Co. In 1918, it was given the name Arthur Andersen Co. The company supplied tax, consulting services and auditing for the large business, and itself had a position in the Big Five accounting firms. In 2002, this firm was found guilty for auditing an energy corporationRead MoreFinancial: Internal Control and Public Accounting Firm1290 Words   |  6 PagesThe duties of the board are: †¢ Register public accounting firms that prepare audit reports for issuers †¢ Establish and/or adopt auditing, quality control, ethics, independence, and other standards relating to the preparation of audit reports for issuers. †¢ Conduct inspections of registered public accounting firms. †¢ Conduct investigations and disciplinary proceedings, and impose appropriate sanctions. †¢ Perform such other duties or functions as the Board determines are necessary or appropriateRead MoreSarbanes Oxley Act # 11 Titles Essay889 Words   |  4 PagesSarbanes-Oxley Act contains 11 titles, which provide the specific guidelines and regulations for financial reporting. The titles are: Public Company Accounting Oversight Board (PCAOB), Auditor Independence, Corporate Responsibility, Enhanced Financial Disclosures, Analyst Conflict of Interest, Commission Resources and Authority, Studies and Reports, Corporate and Criminal Fraud Accountability, White Collar Crime Penalty Enhancement, Corporate Tax Returns and Corporate Fraud Accountability. The introductionRead MoreManagement Planning- Arthur Anderson1299 Words   |  6 Pageswill evaluate the planning function of management within Arthur Andersen. Specifically, the paper will discuss at least one legal, ethical, and social responsibility issue that impacts Arthur Andersen. Additionally, this paper will analyze th e impact these factors have on Arthur Andersen’s management planning. Finally, this paper will analyze at least three factors that influence Arthur Andersen’s strategic, tactical, operational, and contingency planning. The firm of Arthur Andersen LLP wasRead MoreBusiness Operations: Financial Issues1854 Words   |  7 Pageshave been resolved voluntarily was the conflict of interest that led to the failure of security market leading to the collapse of Enron, WoldCom and other companies. The conflict of interests is in the stock research industry, which was part of the function of investment and brokerage banking. However, SEC is in process of addressing the following conflict of interests: Approval of research reports and prepublication clearance initiated by investment bankers. Compensation, supervision, and evaluationRead MoreSarbanes Oxley Act : Government Policy Paper967 Words   |  4 PagesPolicy Paper Kelly L. Privatte Cosumnes River College Author Note This paper was prepared for Economics 304, taught by Professor Nguyen Introduction The government formulates various laws to achieve optimum utilization of resources in the public sphere. Sarbanes-Oxley Act is one of the numerous laws drafted to optimize resources utilization in public companies (McNally, 2013). The act seeks to attain maximization utilization of resources by entrenching accountability and transparency in theRead MoreAcc 11410 Words   |  6 Pagesimportant functions performed in an organization, among which accounting is one of them. Define the accounting function and discuss how it differs from double-entry bookkeeping. Accountants analyze and interpret financial information, prepare financial statements, conduct audits, design accounting systems, prepare special business and financial studies, prepare forecasts and budgets, and provide tax services. Double-entry bookkeeping records the economic activities of a business. Accounting includesRead MoreSarbanes Oxley Act # 11 Titles971 Words   |  4 PagesSarbanes-Oxley Act contains 11 titles, they provide specific guidelines and regulations for financial reporting. The titles are: Public Company Accounting Oversight Board (PCAOB), Auditor Independence, Corporate Responsibility, Enhanced Financial Disclosures, Analyst Conflict of Interest, Commission Resources and Authority, Studies and Reports, Corporate and Criminal Fraud Accountability, White Collar Crime Penalty Enhancement, Corporate Tax Returns and Corporate Fraud Accountability. In the introductionRead MoreManagement Planning of Arthur Anderson Essay1284 Words   |  6 Pageswill evaluate the planning function of management within Arthur Andersen. Specifically, the paper will discuss at least one legal, ethical, and social responsibility issue that impacts Arthur Andersen. Additionally, this paper will analyze the impact these factors have on Arthur Andersen’s management planning. Finally, this paper will analyze at least three factors that influence Arthur Andersen’s strategic, tactical, operational, and contingency planning. The firm of Arthur Andersen LLP wasRead MoreThe Role Of External Auditing On Promoting Good Corporate Governance Essay1646 Words   |  7 PagesThe purpose of this paper is to highlight the role of external auditing in promoting good corporate governance. The role of auditors has been emphasized after the pass of the Sarbanes-Oxley Act as a response to the accounting scandal of Enron. Even though auditors are hired and paid by the company, their role is not to represent or act in favor of the company, but to watch and investigate the company’s financials to protect the public from any material misstatements that can affect their decisions