Federal Budgeting And Accounting

Topics: Financial audit, Auditing, Audit Pages: 4 (615 words) Published: March 2, 2015


Federal Budgeting and Accounting
Cayce Harris
ACC-548
01-15-2015
Mindi Smedley
Federal Budgeting and Accounting
What roles do accountants play in managing government and not-for-profit organizations? According to Granof, “conventional, business-type management accounting focuses mainly on maximizing net inflow of cash. The aims of governments and not-for-profit organizations, of course, go well beyond maximizing cash flow” (Granof, 2013). Accountants in government and not-for-profit organizations can play several roles in the fiscal management of that organization. There are four roles in the management cycle of governments and not-for-profits, team of statisticians, economists, other social scientist and accountants, policy makers: congress, chief executives; audit team of accountants, along with statisticians, economists and experts in specific areas; and government agencies. The objectives of the first role of the cycle, Statisticians, economists, other social scientist and accountants, is to identify the need for programs, collect and analyze budgetary and other financial information, and perform a cost-benefit analysis. The objective for the second role, policy makers, is to selective among alternative programs and establish policies and goals. The objectives of role three are to evaluate the efficiency and effectiveness of programs and report to policy makers. The objectives for the forth and final role are to administer the programs and prepare financial statements and other reports. Once these objectives have been met the cycle repeats itself to ensure the success of the programs. How are government and not-for-profit organizations audited?

Government audits are categorized into three categories: financial audits, attestation engagements and performance audits. Financial audits are used to determine if the financial statements of a specific entity are presented fairly in accordance with GAAP. These audits can also be used to...

References: Granof, M. (2013). Government and Not For Profit Accounting: Concepts and Practices, 6e. John Wiley and Sons, Inc.
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