articles

Should I have a credit card

Fri, 30 Oct 2009 10:57:05 +0100

Article courtsey of Everything Finance: Are you worried about the right number of credit cards that you should be having right now in your wallet. The fact that the credit cards that you have are a real nice tool if they are used wisely, else they would not take long to turn into a death trap, cannot be denied.

According to the experts having multiple credit cards is certainly not a bad thing. Usage of credit cards is a good way to keep a tab on the kind of expenses that you might have in your regular day to day life. The simple trick is to use multiple credit cards. Like use a specific card for buying petrol for your car, another one for the grocery, another one for the high ticket items like your DVD player, purchase of furniture, another one for your monthly bills etc. This way you would be able to keep a track on how much you are spending on what kind of items.

But in case you are using multiple credit cards then you ought to remember multiple due dates for those cards, the interest free periods, and the details of the offers for which you had used the specific card. In other words you would be required to know any thing and every thing about your card like the back of your hand.

Rolling over the credit is the worst thing that one can do with the credit cards. Like in the case of the impulsive buyers, who would just go shopping without considering how much they would be able to pay for the purchases, would not take much time to find themselves neck deep sunk into debts, with collection calls coming to them every day. Also do not forget about the huge amount of interest that would be payable on the purchases. So if you are in the habit of rolling over the credit just stop it immediately before you land up in big time trouble.

If you have a good payment track, chances are your credit limit would be enhanced soon enough. Thus be careful, about over spending and use the points that have accumulated in your card to get gifts free for your self or for your loved ones.

Amazing Grace

Wed, 16 Sep 2009 12:42:50 +0100

Amazing Grace! How sweet the sound
That saved a wretch like me!
I once was lost, but now am found,
was blind, but now I see.

Twas grace that taught my heart to fear,
And grace my fears relieved;
How precious did that grace appear
The hour I first believed!

Through many dangers, toils and snares,
I have already come;
Tis grace hath brought me safe thus far,
And grace will lead me home.

And when we've been there ten thousand years,
Bright shining as the sun,
We'll have no less days to sing God's praise
Than when we first begin.

Amazing Grace
John Newton (1725 - 1807)

The meaning of auditor?

Tue, 15 Sep 2009 11:06:59 +0100

What exactly is an auditor? I have heard many companies when asked for the Financial Statements or accounts say “Speak to the auditors?” and when asking numerous businesses their response is that an auditor is some-one independent or separate from the day to day running of the business. In part this is true but this is not the definition of an auditor and many people seem to be in confusion as to the exact role of an auditor and what an audit entails. Some-times the auditor is mixed up with an accountant and this does get mighty confusing.

Now the word “audit” actually originates from the Latin “to hear”, and this is precisely what an audit should be about, to hear or observe what is happening within an organisation through discussion with stakeholders, observation and scrutiny and documents.

According to the Auditing Professions Act (Act 26 of 2005) audit “means the examination of, in accordance with prescribed or applicable auditing standards:

1) Financial statements with the objective of expressing an opinion as to the fairness or compliance with an identified reporting financial framework and any applicable statutory requirements: or

2) Financial and other information prepared in accordance with suitable criteria, with an objective of expressing an opinion on the financial and other information. “

The simple Latin definition of “audit” does seem easier to digest and does personify the essence of an audit. The above definition does limit audits to primarily financial information as pertains to the audit of an organisation’s financial statements when in fact audits include all reviews of not only financial accounts but of the systems, compliance to procedures and risk reviews. It is at this stage that the wording needs to be expanded into External Audit vs Internal Audit.

An external audit is performed by a registered auditor (RA), registered with the Independent Regulatory Board of Auditors (IRBA). Only a registered audit can sign off the audit opinion on the financial statements. Fortunately with the new Companies Act many organisations have been de-regulated and only regulated industries and Public Companies or Private Companies with a public interest are required to be audited. This means that all smaller Private Companies (shareholders are involved in the business) only require a review of the financial statements and this review can be performed by an accounting officer.

An internal audit includes any review by a qualified internal auditor of an organisation’s controls and systems to ensure compliance with procedures and standards and to identify any risks or areas where controls can be improved. The internal auditor invariably assists the external auditor when stating their audit opinion in the financial statements.

In summary an auditor is anyone who performs an independent review of an organisation for purposes of submitting a report including an opinion based on the objective and scope of the review and findings and recommendations relating to the issues identified.

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