Practical integrated accounting awarness for cash and cash equivalent

1.
Hamdy A. Rashed
2012‐01‐29
Practical & Integrated
Accounting Awareness
For Yemeni who are interesting in knowing about accounting
area
Collected by: Hamdy A. Rashed, CMA, CAPM

2. Practical & Integrated Accounting Awareness 2012
Hamdy A. Rashed | www.hamrconsult.yolasite.com
2
Contents
Investments .................................................................................................................................................. 4
Accounting Techniques ............................................................................................................................. 4
A) Short‐term money market Instruments ........................................................................................... 4
B) Debt Securities .................................................................................................................................. 4
B.1) Held‐to‐Maturity Debt Securities .............................................................................................. 5
B.2) Available‐For‐Sale Debt Securities ............................................................................................. 8
B.3) Trading Debt Securities .............................................................................................................. 8
C) Equity Securities ............................................................................................................................... 9
C.1) Holding of less than 20% ........................................................................................................... 9
C.1.A) Available‐For‐Sale Equity Securities ................................................................................... 9
C.1.B) Trading Equity Securities .................................................................................................. 10
C.2) Holdings between 20% and 50% ............................................................................................. 10
C.3) Holding of more than 50% ....................................................................................................... 11
Financial Reporting ................................................................................................................................. 11
Internal Controls ..................................................................................................................................... 14
Management Accounting ........................................................................................................................ 15
Financial Analysis ................................................................................................................................ 15
Short‐term Investments Management ............................................................................................... 16
Investments Management .................................................................................................................. 17
Audit View ............................................................................................................................................... 18
Audit Objectives .................................................................................................................................. 19
Materiality ........................................................................................................................................... 19
Inherent Risk ....................................................................................................................................... 19
Audit Test of Controls: ........................................................................................................................ 19
Substantive Tests of investments balances ........................................................................................ 20
Forensic Accounting. ............................................................................................................................... 21
Fraud Risk Scenario ............................................................................................................................. 21
Price manipulation .......................................................................................................................... 21
Fraud Detection Procedures ............................................................................................................... 23
Legal Business Environment ................................................................................................................... 23

3. Practical & Integrated Accounting Awareness 2012
Hamdy A. Rashed | www.hamrconsult.yolasite.com
3
Business Appraisal/Financial Valuation .................................................................................................. 26