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Unit 11: Information System and Reporting to Management

meant for the external users i.e. bankers, financial institutions, shareholders and Notes
government authorities. They are generally regular and include annual accounts,
directors’ reports, and auditors report. It is obligatory under Companies Act to
furnish these reports.
(ii) Control Reports: These reports have already been discussed under the head reports
based on information.
(iii) Investigative Reports: These reports are specially prepared only when to investigate a
particular problem. These types of reports contain findings and suggestions to solve
the problem. These reports are helpful in taking a decision on a particular problem.
4. Functional Classification of Reports: These reports are normally for the particular function
or for a particular department or for joint activity. They are also of two types:
(i) Individual Activity Report: Report is prepared for the individual activity of a single
department working under the supervision of one executive is known as individual
activity report.
(ii) Joint Activity Report: This report is prepared when joint efforts are made in performing
the activity. When the details are necessary then they should be included in appendix.
Then the results of all the joint activities are considered under the supervision of the
main supervisor.

Self Assessment

Fill in the blanks:
10. Reports, which are prepared for the use of different levels of management and for the use
of the employees are known as the reports for …………………… users.
11. …………………… reports are only control reports and they are required only when a
control system exists.

12. Operating Reports convey the information regarding the …………………… of the business
at different functional levels.
13. …………………… reports are generally meant for the external users i.e. bankers, financial
institutions, shareholders and government authorities.

11.5 Modes of Reporting

There are three modes of reporting: (1) Written (2) Graphic, and (3) Oral. These reports are
further divided as depicted in table 11.3.

Table 11.3: Modes of Reporting

Written Graphic Oral
1. Financial Statements 1. Charts 1. Group meetings
2. Tabulated Information, 2. Diagram and Pictures 2. Conferences and Individual
Conferences and Individual talks
Talks
3. Accounting Ratios 3. Graphs

1. Written Reports: Written reports are prepared in the different forms to provide
information. These are as follows:

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