Essay about Financial System and Auditing

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Table of Contents

Executive Summary……………………………………………………………………….
Introduction to Tesco……………………………………………………………………..
Effectiveness of Accounting System at Tesco …………………………………………..
The main financial statements of Tesco. ………………………………………………... Financial statement……………………………………………………………….. Benefits of the financial statements……………………………………………… Income statement ………………………………………………………………… Benefits of the income statement………………………………………………… Cash Flow statements……………………………………………………………. Benefits of the financial statement……………………………………………….
Accounting concepts………………………………………………………………………
Factors that influence the nature and structure of accounting system………………..

Management control system……………………………………………………………..
Types of …show more content…
From the balance sheet it is easier to understand what the firm owns and what it owes as well as where the money has been raised and also its level of working capital.

Benefits of the Financial Position

The balance sheet what a firm owns and what it owes to the other parties and using these we can calculate the book value of the business organization. Gearing and liquidity position of the firm can be identified through balance sheet.

02. Income Statement (The profit and loss account)

The profit and loss account shows the income that a firm has earned during a period of time. When we deduct appropriate expenses, either profit or loss for the period can be identified. Pizzey.A, (2001), concluded that financial reporting standard requires that the company’s turnover , profit and capital employed should be analyzed to the various segments of the business so that users of the financial statements can see the profitability of the various activities undertaken in a complex group of companies.

The benefits of the income statements

As mentioned above profit and loss statement provides a measure of a firm’s performance over a
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