Financial accounting focuses on the reporting of an organization's financial information to stakeholders. It measures and records business transactions and prepares financial statements in accordance with generally accepted accounting principles (GAAP) and subject to audit and internal control. When stakeholders are reviewing accounting reports, it is important to know what internal controls are in place. Without appropriate procedures, and without designated people engaged throughout the process, money can be accounted for in error, misdirected or embezzled.
At the conclusion of the module, participants will be able to:
- Define financial accounting and its purpose.
- Distinguish between the two basic types of accounting – cash vs. accrual.
- Identify the stakeholders of the accounting process outputs.
- Specify internal control requirements.