Accounting Information Summary

Accounting Information Summary

There are a lot of advantages to having the same person performing multiple tasks in a particular process is that person will understand the process of the task and where they left off during the process should they become distracted or need to step away from the task at hand. Understanding special coding he/she may have set up to aid in successfully completing the task is also an advantage to having one person handling several duties.

An outsider so-to-speak may not understand symbols added to the ledger whereas the individual who placed the symbol there knows what the symbol means. The disadvantages to having one person performing multiple tasks include the possibility of mistakes going unnoticed or deliberately overlooked. The individual who is multitasking might become lazy or simply leaves the error to fix at a later date, or believes their work is complete and does not double check their figures. Ego or just simply being lazy could have cost repercussions to a form.

Having an individual’s ego or simply laziness could have costly repercussions to a company. More challenging is theft or embezzlement by the same individual with no oversight could be a major disadvantage to the company. If that individual realizes the control they have on both ends there is a sense Of temptation to take advantage Of the situation and this could damage the firm. There is a line drawn between cost-benefit analysis and the accuracy of records, and the damaging discrepancies in reporting has come to light. More so in a publicly traded organization.

An example of such organizations that have fallen into the category of inaccurate reporting of financial records had as a result have collapsed, Lehman Brothers, Arthur Andersen and World. The cost effect it has on a company’s public image is far greater that the cost of losing the human resource that submitted erroneous information. Ramose International would have some loss the following year especially if they implemented the controls needed to reduce those costs. As long as Ramose secures their cash first then their liquid assets are protected from embezzlement.

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