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Accounting arrangements and practices refer to guidelines on how the accounts of a particular organization are to be maintained and used. Among other things it will defines the major heads of accounts to be used, nature and frequencies of accounting reports to be generated, and measures to be adopted to ensure the the information contained in the accounts and the accounting reports is correct complete.
Every company need to decide on the nature of its accounting arrangement and practice. This will depend on nature of the operation of the company. In addition the company must also decide in what way the accounting information will be used for management planning and control. Attention also need to be paid to taking reasonable steps to prevent errors and frauds. In addition to internal requirements of the company, attention also need to be paid to external accounting and other statutory requirements.
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