Chapter II ACCOUNTING ACCOUNTS AND CURRENT IABILITIES

 

In the course of practical training at the enterprise involved in conducting audits as an assistant auditor of the following companies: LLP "MGS", LLP "Techno-lab”.

In carrying out audits in organizations were given the task to examine the treatment of petty cash, check on the reliability attached to expense reports, and documents the legality of paying for them (Channel links cannot be found.: Advance Report, 71 turnovers in a row for the 4th quarter). During the audit of the site revealed the error listed below:
-Expense reports are not approved by the head
No-service task
-Failure to provide a report on the expenditure of funds
Wrong-charge of daily business trip abroad
Is not accompanied by supporting documents
-Date of the supporting documents more than the date of the expense report

Order-no head of the list of persons who are allowed to cash funds to be accounted for At the audited company LLP "Instal Trade” when checking Payroll reports in advance to approve a visa is not the head of these costs, ie there is no signature in the "reasonably incurred costs to confirm." CEO is not confirmed the feasibility expenditures for expense reports for April, May and June 2009.Amounts incurred and recognized upfront costs included in cost of sales may not be recognized by the tax authorities without proper documents for the calculation of the profits from sales. As a result, these costs may be included in the total taxable income of the employee and the appropriate basis for calculating the unified social tax, and are excluded in calculating taxable income.

In addition, this company identified cases of transmission received on account of cash by one employee to another, and the late submission of expense reports.

In accounting, business corporation "sign" travel expenses in excess of the limits of payment for hire of premises reflect the accounting entry on the debit side 84 "Retained earnings" subs 2 "Retained earnings" and the credit of 71 Payroll." In this case, the use of retained earnings as a source of excessive expense coverage is unlawful, as in accounting, they should be included in the current period and reflects the costs of the accounting entries to debit 26 "economic costs" and credit of the 71, "Payroll".

When calculating the taxable income according to claim 1 pp.12 st.264 Tax Code, the costs of hiring premises are accepted on a business trip in full, and per diem expenses only be accepted within the limits approved by the Government of the Kazakhstan - in the amount of 1612 tenge for each day of a business trip in the Kazakhstan.

When checking the Payroll Company "BARS" established that the direction of the employees in the organization of trips abroad were issued to fund accountable entity funds in national currency – Kazakhstan tenge, which is a violation.

At this stage of the production practices considered and reviewed the primary accounting system and accounting records of payments to suppliers and contractors (invoices received and invoices, log books and invoices received invoices, book sales, book purchases, journal-order number 6) were carried out audits Procedure: validation (completeness and accuracy) posting the facts of inventory, adoption of accounting work, services, checking the speed of registration upon receipt of raw materials, services, checking the legality of the primary accounting records, preparation of operation is estimated to suppliers and contractors, checking the completeness and accuracy of the registration document in the accounting records.

In the course of these procedures were identified instances of lack of invoices, statements of work performed on the services received and / or work on the basis of which made the log entry warrant number 6.

As a result, a spot check of invoices received from suppliers and contractors, established unreasonable application of tax deductions for the value added tax (VAT) on the basis of invoices for services outside work (demolition, plant and equipment) and invoices are not furnished in accordance with the requirements of Art. 169 of the Tax Code.

Primary Records

The reports are intended for information containing the results of accounting or detailed information, selected according to various criteria.
Standard reports are used for general analysis of the results of accounting and flow of funds accounts, as well as to analyze the results at the level of accounts, sub-accounts, currencies, analyst’s objects by different periods.

Specific reports are focused on the reflection of information on specific sections of the records. Often they are "under a" specific organizations when necessary to obtain specific information or a sample of a special kind of printed form.

Regulated Records allows you to create data for tax inspections and other authorities. Their composition and content is determined by various government agencies. The package includes a set of rules methodically verified the formation of regulated records for the cost-accounting enterprises of Russia. At the same time, regulated reports can be created by users and programs to produce a specific sector and regional reports.

Inventory cards, card inventory of materials.
Cards opened for each item (part number) of products in accounting and a receipt of their registration papers are transferred to the warehouse. In the cards shall include the name, stock number, grade, size and other characteristics of products, discount price, storage space, the norm of the reserve. For the convenience of card stock are placed in a special box - file cabinet, where are the groups of products, and within groups - on the part number in their ascending order. Cards are separated one group from another comma, which specify a number and the product groups.
Entries in the cards are made of material - responsible persons on the basis of the documents will be in stock and retirement from the warehouse of finished products upon completion of transactions. At the end of the day in the cards, where it was noted the movement of products, shows the final residue. At the end of the reporting period, all the cards (regardless of whether it was or was not the movement of finished goods on a particular product name) shall bear the final balance.
Periodically, Warehouse Manager or Storekeeper sets of card balances exceeding the actual rules of the stock, and if there is movement of goods without reference signal, which passed in the sales department or marketing to take measures to reduce the residual products.
Cards may be filled by technical means, mounted on the stock. The data on income and expenditure are recorded in inventory cards in conjunction with an extract of primary documents.
In enterprises with a small range of products instead of the cards in stock of finished goods is a book keeping.
In warehouses, equipped with computer technology, instead of cards and book accounting is made using a computer list of operational presence and movement of finished goods for its names and forms. This list is made for the accounting, sales, marketing, and other interested users.
At a number of finished products are packed in the shops and the warehouse, it comes in boxes, which indicate its name and the number of items in one box. In this form (without unpacking boxes) products from the warehouse is transferred to buyers. Storekeeper at reception and leave product does not check the contents of the boxes and, therefore, is not responsible for the amount of product in them, and for the number of accepted cases and their integrity. In such cases, inventory control movement of finished products should be conducted not only in physical terms, but also by the number of boxes of labels.
DEPARTMENTS

The method of analytical accounting of finished products through varietal turnover balance sheet is as follows. In stock, as well as a parallel method of accounting, are carried out cards of quantity and Accounting - Grade negotiable bill of the same form as that of a parallel method, in which the data are entered directly from the incoming and outgoing primary documents. In this case the primary documents are arranged by part number or product names. Usually on the back of the last paper receipts for each part number (name) for the reporting month, the number and amount of product recorded, on the back of the last paper on the flow rate - the number and amount of the released product. This method involves the use of single-line documents. If the applied multi-documents, the savings are used to separate statements, receipts and expenditures, which accumulates the data in the context of nomenclature issues. As a cumulative statements on the arrival of a statement can be used taking into account production.

Accumulated over the last month of the primary documents or statements by using the accumulative data is transferred to the back varietal statement.
In some cases, reverse profiled sheet is compiled on the basis of a report of material - a responsible person who is filled according to the card (book) inventory. The report of the cards for each part number carried on the balance totals, receipts and expenditures in real terms. In statements made to taxing by part number and calculation of the amounts for groups and for all the products in general.

Quantitative data on individual stock number of products profiled the back sheet are compared with corresponding data card inventory, and the totals for the whole sheet compared with the corresponding data (balance at the beginning and end of the month, income and expenditure), a synthetic account of the account 43 "Finished products".

Trial balance (operational - accounting) method of accounting involves preparation of the finished product trial balance accounting.

The statement of account balances (trial balance) balances are reflected on the first day of each reporting period. Statement of accounts opened in each warehouse and maintained by groups of nomenclature and numbers (names) of the finished product. For each part number (name) indicates the unit of measurement and accounting cost. At the end of the reporting period, a statement sent to the warehouse. Warehouse (the storekeeper) of card (book) inventory control carries a sheet for each part number balance at the end of the reporting period in real terms. Statements sent from the warehouses to the accounting department, where taxes by balances are calculated on the amount of teams, warehouses and enterprise as a whole.

Cash book and cash transactions in the enterprise Register incoming and outgoing cash orders is in the log incoming and outgoing cash instruments (Form CO-3), designed to monitor the proper use of funds.

The movement of cash is taken into account in the cash book (FormCS-4). The organization must keep a cash book, laced with numbered sheets sealed and notarized signatures of the director and chief accountant.

Cash book is the cashier. Each leaf cash book consists of 2 identical parts, one of which is filled as the first instance, and another - through the carbon paper - as the second. The second copy is cut off and the cashier's report, which at the end of the day filed incoming and outgoing cash orders, together with supporting documents. The report is subject to verification cashier chief accountant
if the cash book is being automated (computer), it is printed on the end of the month, and year-end is stitched, sealed and certified by the appropriate signatures.

 

Table 1 Filling the Cash Book

Earl	Contents
document number	Serial number of receipts or supply cash order
From whom received or whom given	Name of person or legal entity deposits its name (get) money, and a summary of operations
Corresponding account number, sub-	Account number, which, in correspondence with a score of 50 "Cash"reflects the movement of money
receipts	The amount received by the credit slip
expense	The amount issued for the disbursement vouchers
Total for the day	Total amount of credit and debit orders
Balance at the end of the day	Determined by the formula: Balance at beginning of the day + coming for the day - consumption per day

 

Forms of financial statements

The financial statements (accounts) - a set of reporting forms, compiled on the basis of accounting in order to present the user generalized information about the financial position and activities of the enterprise, as well as changes in its financial position during the reporting period in the prescribed form to make them user-specific business solutions.

Also features a source of information does financial reporting oversight role, which is to monitor, both external and internal controls over the correctness of the reflection of financial and business enterprises. Internal users are directly accountant, management personnel and other persons who use the reports in their work. External users are the entities that use the information published for information about the company. These are the shareholders, investment companies, banks, customers and partners of the firm.

To date, there are three types of reports: operational, statistical and accounting. The term is similar to financial accounting. Operative, in other words, you can call every day. The financial statements contain information about sales, inventories of finished goods and goods on the state of economic resources and sources of their formation, the financial results of the enterprise.

Financial statements are required to prepare and serve enterprises, associations and organizations are legal entities (excluding banks), and the balance allocated to the separate branches, representative offices, branches and other separate subdivisions of enterprises and organizations (other than banks and public institutions), irrespective of the activities and forms of ownership.
The reporting year for all businesses is set from 1 January to 31 December inclusive.
To carry on the financial statements of functions, it must meet the following requirements:
• ensure the reality and accuracy of the data provided by documenting all of the records, conduct inventories, sticking to the rules of evaluation of balance sheet items, the distribution of profits and losses for the respective periods;
• ensure timely receipt of data, based on the timing of regulatory reporting data for the comparison of the operational management of economic and financial activities of organizations and enterprises.
The main terms of the correctness of the financial statements are as follows:
• completeness of the reflection of all business transactions during the reporting period;
• compliance with these synthetic and analytical accounting;
• compliance with performance data FD of synthetic and analytical accounting.
If the financial statements represent the final stage of compilation of financial information, the analyst's main task is to present a reality that is embodied in the study report. For this purpose, it should logically be able to restore business operations, summarized in the report, the ability to repeat the work of an accountant in the reverse order.

 

SECTION 3. ACCOUNTING AND AUDIT OF CASH.

The next task in the practical training was to study the order of cash transactions, their documentation and records, and checked their compliance with the order, approved the Regulations of the National bank of Kazakhstan on 04.10.93 N18 «On approval of the order of cash transactions in the Republic of Kazakhstan."

Importance for economic and financial activity of organizations is the timeliness of cash payments, well-established credit records and payment transactions.

In the process of organizing economic activity is constantly engaged in payments to suppliers for the acquisition of their fixed assets, raw materials and other commodities and materials and services rendered to customers for work performed and services rendered to the public for the provision of utilities and other services to credit institutions on loans and other financial transactions with the budget on various types of payments to other corporations and individuals for various business transactions.

Cash payments are made non-cash payments and cash. Cashless payments in a developed market economy performed using money orders and other payment documents by transfers on settlement and current accounts in banks. By bank Transfer Company calculated with other organizations, the budget, as well as some individuals who pay a fee for an apartment bank transfers. The use of cashless payment reduces the need for cash, reduces the cost of money circulation, and contributes to the concentration of banks available funds organizations that provide them more reliable safety.

Cash in hand the organization are in the form of cash and cash instruments in bank accounts, checkbooks. The most important task of accounting - their multiplication, proper use, control over safety. To store the cash used fireproof safe with two keys to it. The first key is kept by the cashier, the second in a vault in the bank to the right of access as a chief accountant and director.

In the organization of cash funds received from the bank account, and as a result of cash payments for inventory holdings and services, with the return of the amounts of previously issued, etc.

To receive money from your bank account checkbook issued to the organization. At the check point to the appointment of the required amount. Tear-off portion of the check is in the bank, and the organization - a check stub showing the amount received.

Receiving cash draw up credit cash order signed by the chief accountant. Cash withdrawal from the cash expenditure made on a cash and warrants duly executed payrolls, statements with imposing on them a special stamp of the enterprise. The document for the grant money prescribes accounting. They must be signed by the director and chief accountant.

In cases when the accompanying consumable cash orders documents, statements, permitting a label head of the organization, the signature of the head at the expense of cash orders is optional.

Wages shall be issued by the payroll clerk. On the payroll should be permissive label head of the organization to grant funds, specifying the amount in words. Simultaneously, the data are entered into a computer program 1: "Accounting" or other accounting software for further processing.

Accounting for the movement of cash on hand is a cashier in the cash book. This book is tied together and sealed with wax seal, and the pages in it are numbered. Entries in the cash book are produced in duplicate by carbon paper. Second copies of tear sheets and serve as a cashier report. At the end of the day the cashier counts the results of operations for receipts and expenditures of money on hand, displays the cash balance at the following number and sends to the accounting separation sheet of a receipt in the cash book.

At the end of the month by comparing the outcome turns on the debit and credit account 50 "Cash" shows the balance of cash at the beginning of next month. He was cross-checked with balance in the cash book. In the terms defined by the leadership of the organization as a once a month, conduct an inventory on hand cash, the results of which draw up the act.

Shortage of cash on hand to be recovered from the cashier. When testing revealed a violation of cash discipline: inaccuracies, omissions requisites for registration of incoming and outgoing cash orders, corrections in the source documents and accounting records.

In the cash book set unspecified fixes, not calculated the balance of wages is not issued on time. In the absence of a cashier for a valid reason, the duties of the cashier are assigned to an employee authorized by order of the head of the organization with which the mandatory signed an agreement on full financial responsibility. In some cases, the contract is not in violation of the Order of cash transactions.

ACCOUNTING AND AUDIT OF INDUSTRIAL MATERIAL INVENTORY

The next step was to conduct an audit of the accounting sub-division of materials: have been studied and verified the results of the inventory of material assets, the accuracy of their design, document the consumption of inventories, as well as the correctness of their use and the inclusion of expenses of the organization. (ANNEX card account 44 (cancellation TMC's own needs, Invoice)
When checking the correctness of the inventory of inventory at one of the companies audited in accordance with the inventory revealed that the employee participated in the inventory are not included in the inventory of the Order of the Commission on the head.

When checking the correctness of write-off fuel at the plant, it became clear that there is no evidence of analytical metering of individual fuels with different costs and consumed separately for car brands in the travel pages of the work of cars and trucks are reflected in the return of the speedometer in the car garage. This accounting will not reliably determine the number and cost of fuel consumed. To the cost of fuel have been recognized in the tax records must be documentary evidence of these expenses - such is the track list. As to costs, deductible for income tax, are documented and economically justified costs, then checking the tax authorities will pay attention to how the waybills issued and how economically costs incurred justified.

For an analytical cost accounting is used to repair the defective statement, which confirms the need for the production of these expenses, determine the amount of capital repair works, their estimated cost and duration and the prescribed job order. In accordance with the need and scope of work set forth in the punch list, and job order prescribed requirements, the overhead (form number M-11), which are an element of control over the formation of the current costs for certain types of repairs. Requirements on the scanned invoices, the company was not confirmed by the faulty statements and job order, and, consequently, the amount incurred and recognized costs of inventory included in the cost, are not documented expenses and may not be recognized by the tax authorities to calculate the profit on sales. In addition, the identified cases of improper expenditure of operations reflect the materials in the accounts. The cost of the materials released for installation and installation of fixed assets were properly chargeable to the account of production costs charged to 26 "economic costs" and credited to the account 10 "Materials." In accordance with the methodological guidelines on accounting data, plant and equipment expenditures are capital and are reflected in the account 08 "Investments in fixed assets."

In the absence of a cashier for a valid reason, the duties of the cashier are assigned to an employee authorized by order of the head of the organization with which the mandatory signed an agreement on full financial responsibility. In some cases, the contract is not in violation of the Order of cash transactions.

ACCOUNTING FOR PAYMENT OF TAXES

The main types of taxes in the ROK (brief description of each tax: rates, facilities, payers, etc.). Features of the tax regime in the ROK.
State and local.

At this time in the RC are 9 types of taxes.
1. Corporate income tax.
2. Individual income tax.
3. Value Added Tax.
4. Excise.
5. Taxes and special payments of subsurface users.
6. Social security tax.
7. The land tax.
8. The tax on vehicles.
9. Property tax.

Go to payers of corporate income tax are legal entities-residents of the Republic of Kazakhstan, with the exception of National Bank and government agencies (as well as legal persons, applying the special tax regime), as well as non-resident legal entities engaged in activities in the ROK through a permanent establishment or receiving income from sources in the ROK.

Taxable income is defined as the difference between the gross annual income and deductions. Losses from business activities carried on up to three years (loss of subsoil use contracts to carry up to seven years inclusive) to cover the expense of taxable income of subsequent tax periods.
The payers of individual income tax are individuals who have objects of taxation. According to the Tax Code are not taxable income the following individuals:
a) targeted social assistance, benefits and compensation;
b) child support received for children and dependents;
c) damages to the employee;
d) compensation paid to individuals on their deposits in banks and organizations;
e) lottery winnings within 50% of the minimum amount of s / n;
e) grants, etc.

Value added tax is a deduction in the budget of the value of the taxable turnover of sale, added during the production and circulation of commodities, as well as payments for imports of goods into the territory of the RK. The objects of taxation on value added tax are taxable turnover and taxable imports.
Excise taxes imposed on goods manufactured in the territory of the RK and imported into the territory of the RK, as well as some activities.
Excisable goods are:
1) All types of alcohol;
2) alcoholic beverages;
3) tobacco products;
4) gasoline (except aviation), diesel fuel;
5) automobiles;
6) crude oil, including gas condensate;
Excise activities are:
1) The gambling business;
2) organizing and conducting lotteries.
Excise rates are approved by the Government of the RK and the set as a percentage of the cost of goods and in absolute amount per unit in volume.
Not subject to excise duty:
- Export of excisable goods;
- Ethyl alcohol within the ranges: for the manufacture of medicinal and pharmaceutical products, public health facilities.

Taxes and special payments subsoil consists of: the tax on excess profits tax on crude oil prices, bonuses, royalties, etc.

Taxpayers in the profit and special payments of subsurface users are individuals and legal entities carrying out subsoil operations in the ROK (oil, natural gas, coal, groundwater, commodity ores, precious metals, precious stones, raw materials for production of building materials, etc.).
Payers of social tax are legal entities, residents and nonresidents of the RK, individual entrepreneurs, private notaries and lawyers.
The object of taxation for taxpayers is the cost of employer paid to employees in the form of income. The payment of social tax paid not later than the 15th day of the month following the reporting month.

Payers of land tax are physical persons and legal entities having objects of taxation: the right of ownership, the right of permanent land-use right of temporary land use. The amount of land tax does not depend on the economic performance of landowners and land users.

The Earth of settlements occupied by parking lots and gas stations, as well as land set aside for area markets are taxed at basic rate on settlement land, increased tenfold.

Taxpayers on the vehicles are physical and legal persons having objects of taxation. Do not pay tax on the vehicles: the organization, contained only by the state. budget, the participants WWII (one road transport), Heroes of the Soviet Union, Halyk Kaharman, persons awarded the title "Heroine Mother", etc.
Payers of property tax are physical persons and legal entities and individual entrepreneurs who have the object of taxation on the ownership of the territory of the RK. The rate of property tax for legal entities is 1% to 0.5% of sole proprietors and 0.1% for individuals (up to 1 million tenge.) From the average value of the objects of taxation.

According to the Tax Code provides special tax treatment for:
- Small businesses;
- (Peasant farmers);
- Legal entities - the producers of agricultural products.
Special tax regime for small businesses includes the use of a single pass (no more than 90 days per year), doing business on the basis of a patent (does not employ employees, operates in the form of a personal business income for the year does not exceed 1.0 million tenge) and on the basis of a simplified declaration (average number per year is not more than 15 people, including most entrepreneurs, for entrepreneurs, marginal revenue is 4500.0 thousand tenge., no more than 25 people, and 9000.0 thousand tenge. for legal entities).
The peasant (farming), applying the special tax regime based on the single tax payment, do not pay the following taxes: PIT, VAT, land tax, vehicle tax, property tax.
Calculation of the single land tax by 0.1 per cent of the appraised value of the land.
Tax on advertising
Tax on advertising is a local tax. According to the Tax Code, the procedure for payment of local taxes established by regulations of the representative bodies of local self-government (Article 56 of the Tax Code).
Taxpayers of the tax on advertising is recognized companies advertise their products (advertisers):
1. whose location falls on the territory of Moscow,
2. who purchase advertising services (work) or independently perform work related to the advertising of goods (works, services).
The object of taxation.

The object of taxation for the tax on advertising are recognized:
1. acquisition costs of advertising services (works), consisting in the production and distribution for commercial gain information about the goods (works, services) and purchasers of advertising services (works);
2. promotional activities carried out by an advertiser on their own, including the involvement of the advertisement.

Dissemination of information is recognized for its promotion through the media, catalogs, price lists, manuals, leaflets, posters, banners, billboards, calendars, newspapers, light (a light running line or fixed line), announcements, notices, messages, or through other advertising media.
It is also recognized as a tax on taxable advertising sponsorship contributions and sponsored by the sponsor and are, respectively, the advertiser and advertisement.
The tax base for the tax on advertising is the cost of advertising services rendered (work) or the costs of self-perform work related to the advertising of goods (works, services).

For advertising costs associated with production and sales, which are deductible for income tax, include the costs of those named in paragraph 4 st.264 Tax Code, as follows:
1. costs of promotional activities through the media (including print ads, radio and television) and telecommunications networks;
2. the cost of light and other outdoor advertising, including production of promotional stands and billboards;
3. the cost of participation in exhibitions, fairs, expositions, on window dressing, exhibitions - sales rooms and showrooms samples at markdown of goods wholly or partly lost their original quality when exposed.

These costs are taken into account for tax purposes in the amount of profit the company actually incurred costs.
1. Expenses of the taxpayer for the acquisition (production), prizes, and raffles are communicated to the winners of the prizes during mass campaigns, as well as other types of advertising undertaken by them during the tax (reporting) period. These types of promotional expenses for tax purposes of income tax are recognized in an amount not exceeding 1% of revenues.

REPORT OF THE COMPANY

The logical conclusion of the accounting process is the formation of the reporting organization, as needed for internal management purposes and for submission to external users.

Reporting - a set of information on the status and movement of assets, liabilities and results of financial and economic activities of enterprises. Based on these reports shall manage, control and analysis of the subject of both internal users (managers, administration, etc.) and external (founders, tax authorities, statistics, etc.).

An important feature of accountability is the presence of turnover on the accounts the cumulative year to date to the period, which makes it possible to take into account the demand for goods, works and services, to determine their profitability, develop new and promising directions of development activities. The chief accountant and director shall report to the founders of this annual report. The founders make decisions on the results of the company; decide questions about the target distribution of profits, the amount of funds, reserves and dividends. In fact, evaluate the work of the founders of the company and its staff; judge the adequacy of qualification training manager and chief accountant.
The company distinguishes periodic and annual financial statements: the first - the monthly and quarterly, the second - annual.

The final stage of acquaintance with the economic activities of the enterprise was to study the composition of the financial statements, the order of its composition, and structure of the explanatory note to the annual report of tax returns.
In a market economy, the balance sheet is the main source of information for a wide range of users. Thus, according to the balance of the owners, managers and other individuals associated with the management get acquainted with the state property entity. Of the balance, they will know what the owner owns, i.e. what is the quantity and quality of that stock of property, which the company is able to dispose of, and who participated in the creation of this reserve.

On balance determine whether the organization will be able soon to meet its obligations to third parties, determine the final financial outcome of the enterprise. Also, the balance of the data used by tax authorities, credit institutions, and governments.

The balance sheet is an indicator to assess the financial condition of the company. Total balance is called the balance sheet and gives an indicative amount of funds at the disposal of the company. Comparative analytical balance characterizes both the structure of financial reporting forms, and the dynamics of its individual performance. It organizes its previous estimates.