human resources accountng

8/14/2019 HUMAN RESOURCES ACCOUNTNG

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HUMAN RESOURCE

ACCOUNTING

INC

GUNTUR

PUTTU GURU PRASAD


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Approaches to HRA

The American accounting

association committee has defined

HRA is the Process of identifying

and measuring data about humanresources and communicating this

information to interested parties to

facilitate effective managementwith in the organization


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The aspects of HRA

Valuation of human resource

Recording the valuation in the

books of acconunts

Presenting the information ion the

financeial statements of

communication


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Valuation of HR

Historical cost approach

Replacement cost approach

Opportunity cost approach

Standard cost approachPresent value approach

Net benefit model

Reward valuation approach

Total cost concept

Aggregate payment approach


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HRA in India

In view of growing importance of

HRA many companies in India

voluntarily giving information about

their human resources like BHEL,SAIL, MMTC, NTPC, ONGC, EIL


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Assumption underlying HRA

People are valuable organizational resources

capable of providing present and future

services to the organization and such future

services have economic value to the

organization and can be measuredThe information relating to the human resource

would facilitate various management decisions

on acquisition ,compensation, training and

development


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FORENSIC

ACCOUNTNG

INC

GUNTURPUTTU GURU PRASAD


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Forensic Accounting

Forensic accounting also known as

investigative accounting and is

combination of accounting

,auditing and instigative skills . Itprovides accounting analysis that

will be suitable to the court to form

a basis of discussion to arrive at asolution of the dispute


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Larger accounting firms as well as

medium sized firms have

professional forensic accounting

departments. They specialize ininsurance claims, fraud,

construction or royalty audits


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Difference between auditing and forensic

accounting

An auditor does the review of accounts

and jumps into investigation only

when a doubt arises where as a forensic

accountant starts the wok withinvestigation

An auditors duty ends with the

submission of a report what went wrong

where as a forensic accountant also asto see how it can be undone

An auditors role is of a verifier where

as forensic accountant's role is of a


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Difference between auditing and forensic

accounting

Detection of fraud is the secondary objectiveof auditing where as forensic accounting

alleges detection into detail of spending,

recording etc

Auditor detects the frauds and reports it

where as forensic accountant detects the

fraud , conducts investigation and decodes

the financial angle of the crime for analysissuitable to the court which will lead to

dispute resolution

Auditors never use the tools of statistical

and computer aided techniques to arrive at


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A person dealing as forensic

accountant shall posses not only

the broad knowledge of accounting

principles , practice and standardsbut also the knowledge of

insurance, banking civil and

criminal law and humanpsychology.


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Branches of forensic accounting

Investigative accounting-it deals withinvestigation of criminal matters relating to

employee theft, securities fraud, insurance

fraud etc. it does not end with investigation but

also includes provisions of suggestions

regarding possible courses of action

Litigation Support- it involves providingaccounting assistance in litigation matters. It

primarily deals with quantification of economic

damage


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Steps invoked in forensic

accounting

Recognition of the problem

Flow chart is prepared as how to go

about

Collecting the evidence relevant to theproblem

Evaluation of summarization of the

evidence by various statistical and

computer aided techniques

Preparation and submission of report


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Application of forensic accounting

The application of forensic

accounting can be better

understood by the following case

let: it is brought to the notice of theauditor by an employee that the

manager misuses his right of

reimbursement of bill on officialtours by submitting fake bills and

making money around Rs.50,000 a

year

human resources accountng

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