Abstracting and IndexingРИНЦReferativny Zhurnal VINITI RAS Worldcat Google Scholar Online availableEastvieweLIBRARY.RU Biblioclub |
System advantages of variance analysis, materiality of information taken into account
Available online: 18 September 2009 Subject Heading: Materiality of information JEL Classification:
No accountants, nor auditors, analysts, managers, directors nowadays can set limits to the materiality of information necessary to make decisions. The article deals with theoretical and methodological approaches and with the risk-based analysis of variance when auditing client’s business; such methods should determine the disclosure in an explanatory memorandum, should be used when financial institutions analyze borrower’s credit worthiness, also when evaluating bankruptcy threat and credit worthiness of companies within the management accounting and controlling system. Subsystems of economic study, management accounting, controlling and audit are service for managerial decision-making. Informational economy adds topicality to the record of attribute characteristics of economic information utility. Materiality is one of the most important used both in accounting and audit. However neither theory nor practice thereof or of the economic study, management accounting and controlling allow for variance analysis, materiality and risks taken into account. It relates the results of the analysis, accounting, controlling and audit to SWOT as an instrument of strategic management. Keywords: materiality, information, plan, relevance, expenditure, policy, management, variance, minimization, risk, formalization, algorithm, accounting |
ISSN 2311-8725 (Online)
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