According TO Omini (1992:15) play vital roles of management and their rendered services go with operation management as light goes with darkness. A business unit or an institution without an accountant suffocates financially and eventually becomes bankrupt. An accountant meticulously measures economic change records, classifies and analysis transaction of financial character, interprets and draws logics conclusions therefore describes an accountant ass the conscience of management, employees, creditors, the government, board of internal revenue and the potential investors benefits from the financial information produced. An accountant set standard for measuring efficiency through budgeting classification and such-division of costs, accumulation of data, as an aid to price determination, curtailment of losses due to seasonal conditions. These have effectively aided operation management in making estimates for the further allocation of authority and responsibility and finally, for evaluation the efficiently of the organist ion.
1.2 THE ROLE OF AN ACCOUNTANT IN THE OPERATION MANAGEMENT PROCESS
Operation management to perform each of the following functions
1. Planning: He helps the manager to formulate future plans by providing information on what products to sell, in what markets, at what prices and evaluating proposals of capital expenditure. He also provides data on past performance as a guide for future performance.
2. Control: He draws the attention of the mangers to those specific activities which do not conform to plans and the specific are as where the plans are not being achieved.
3. Organizing: The accounting system of an account helps operation management through its organizational structure in achieving effective performance and in strategic planning.
4. Communication: The budgets and performance of operations reports by an accountant communicate important information to management by indicating how well the organization is doing and highting those needing retailed investigation.
5. Motivation: The accountants budgets and performance reports have an important influence on the motivation of the personnel of the organization especially the managers to strive to achieve the organizations objectives.
REASON FOR KEEPING
1. To known the financial position, profit and does not necessarily mean cash.
2. To be able to measure result, particular, to calculate profit and losses.
3. To know the worth f the business, by looking at assets and liabilities.
4. To keep accurate records of the assets and liabilities.
5. To keep accurate records of the assets and liabilities, to know how much is owned to suppliers and is owned by customers, to discourage pilfering and focused.
6. To help make decision based on facts, as much as possible to invest capital, raise or lower process, improve credit control and all the other decision, which must be made.
7. To help plan, using past result and anticipated changes, to set a course for the future.
TRUST ACCOUNT REQUIREMENT AND PERFORMANCE CRITERIA
• Trust account entries and transactions are regularly checked and monitored to ensure compliance with practice and legislative requirements.
• Trust account transact are monitored to ensure appropriate authorization is obtained prior to any disbursement.
AUTHORIZE AND VERIFY TRUST ACCOUNTS
• Periodic financial reports are prepared and discussed with clients to ensure their continued accuracy.
• Rs are maintained to enable them to be conveniently and properly audited
• Periodic reconciliation is verified in compliance with legislative requirements
• Legislative audit requirement are met.
OPERATIONS AND MANAGEMENT TRUST ACCOUNTS REQUIRED SKILLS
• Decision making and problem solving skills to analyse and make decision about practice trust accounts consistent with legislative and ethical requirements
• Financial analysis skills for accessing, interpreting and managing complex financial information
• It skills for accessing and using appropriate software such as spreadsheets and databases, computerized and manual trust account systems using internet information.
• Risk management skills for establish, administering and managing trust accounts.
• Literacy skills to read and interpret documentation from a verify of sources
• Numeracy skills to accurately analyze, record and store data in accordance with organizational requirement.
• Organization skills, including the ability to plan and sequence work and gather, record and consolidate financial information.
TRUST ACCOUNT REQUIREMENTS
• Audit and accounting requirement
• Financial management principle and practices
• Taxation and financial fees and charges
• Compliance of financial and it systems and technology with relevant legislation and regulation.
ELECTRONIC OR MANUAL TRUST ACCOUNTING SYSTEM
The system of internal controls is not restricted to the accounting system only hence, an internal control system should contain
• Checks and balances
• Formal polices and procedures
• Capable people
• Oversight and supervision
In designing the system, management should not introduce control for their sakes only, but in response to specific problems, which could arise. The cost effectiveness of controls and their feasibility should also be taken into accounts.
1. Management:These are the control exercised by management outside the day-to-day routine of the system. The review of management accounts and comparison therefore with budgets, the internal and it functions and any other special review process (Dunn, 1996:164).
2. Arithmetical and accounting: A variety of accounting and bookkeeping devices have been devised for the detection of errors in the financial statements. The trial balance ensures that doubt entry principles have been adhered to. The trial balance ensures that proper double entry principles have been applied to the recording of transaction (Dunn, 1996:164).
3. Authorization and Approval: All transaction should require authorization or approval by an appropriate responsible person. The authorization limits should be specified (Leslie 1982:27).
4. Organization: Enterprise should be have plan of their organization defining and allocating responsibility and identifying lines of reporting for all aspects of the enterprises operations including their controls. The delegation for authority and responsibility should be clearly specified. Responsibility for the correct operation of internal control may be delegated by the board to specific management personnel and to the internal audit department (Leslie 1982:27).
• To prepare financial statement annually or as the case may be
• To report on the operation and management trust account performance and improvement controls.
• To measure and judge its performance and efficiency
• To advice and take control of cash management and tax planning
• Management relevant practice staff is provided to ensure efficient operation of trust account and financial and it systems, and compliance with practice and legislative requirement.
Elements and performance criteria
Element Performance criteria
Review trust account for compliance with trust account requirements Practice trust account requirements are clearly identified, accurately recorded and continuously updated in line with relevant legislation and regulations.
Policies and procedures for accurate trust account keeping are developed which comply with trust account requirements, key principles of accounting and financial management, and legislative requirements.
Criteria for evaluating electronic and manual trust accounting systems are identified and applied to ensure compliance with all trust account requirements.
Establish and manage trust accounts Source documents for trust transactions are identified and accessed in line with legislative requirements.
Documentation of trust records and transactions are produced to give an accurate record of practice transactions on behalf of clients.
Transactions and supported by appropriate authorization and documentation and are in line with practice and legislative requirements.
Entries and transactions are promptly and accurately recorded in line with relevant trust account requirements, and can be provided on demand.
Discrepancies in entries of documentation are promptly followed up to ensure clarification to resolution dare reported to relevant authorities where necessary.
Audit and security arrangements are checked to ensure they provide adequate protection for client confidentiality and client funds held in trust.
Manage and control trust accounts
Disbursements to and from to rust accounts are authorized and managed within agreed practice protocols and legislative requirements.
Appropriate arrangements are made with third parties and other professionals to ensure that practice trust accounts comply with legislative requirements.
Practice trust administration policies and procedures are disseminated or made readily available to relevant staff in line with practice and legislative requirements.
Ongoing training of relevant practice staff is provided to ensure efficient operation of trust account and financial and IT systems and compliance with practice ad legislative requirements.
Procedures for monitoring records and ensuring the security of trust account records and developed and implemented
Monitor and review trust accounts Documentation and other reporting requirements are regularly reviewed for compliance with legislative requirements.
Trust account entries and transactions are regularly checked and monitored to ensure compliance with practice and legislative requirements.
Trust account transactions are monitored to ensure appropriate authorization is obtained prior to any disbursements
Authorize and verify trust account Periodic reconciliation is verified in compliance with legislative requirements.
Periodic financial reports are prepared and discussed with clients to ensure their continued accuracy.
Records are maintained to enable them to be conveniently and properly audited.
Legislative audit requirements are met.
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