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Importance of Books of Accounts


Task 1: Understand the importance of keeping effective accounting systems within a Business (LO 1: 1.1, 1.2, 1.3 and M1, M2, M3 & D1, D2, D3) Scenario: you are working for an accountancy firm. Your role is to carry on the assigned audit job and report to the senior partner of the firm. Discuss the observations, findings and recommend the best practices to be opted for the organisation before finalising the audit and preparing the audit report. 1.1. For the organisation that you have been asked to audit recently, what are the main books o9f accounts there, what are their relevance and how did you verify them? 1.2. There are certain fundamental accounting principles that need to be followed by every organisation, with the help of different examples prove that they follow all the basic accounting practices. 1.3. What are the different factors which influence the structure of accounting system in any organization?