The materiality concept implies that any mistake can influence economic decisions, as they are perceived to be true. Relevance implies that accounting information must be in a position to influence decisions by the business stakeholders. These qualities include relevance, materiality, reliability, understandability, and comparability. This aspect helps to produce work that meets the qualities of financial accounting.
#The public company accounting oversight board professional
Hence, the accountants must adhere to the generally accepted accounting principles that enhance the authenticity of financial reports and statements (Loeb, 2007).Īccounting and auditing professional ethics demand that a professional must act independently. After the preparation of financial statements by the accountants, auditors come in to verify the reports’ authenticity. Therefore, accountants must act in accordance with professional ethics to deliver the desired results for the decision-making processes.
The business position helps managers to make decisions on credit, investment, taxation, and union bargaining where applicable. The greatest interest of the managers is to evaluate the value of revenue and expenses to determine the financial strengths of the business. Therefore, accountants must prepare up-to-date financial reports at any given time for decision-making. Business managers need to know the business position for decision-making. Financial statements are important for business, investors, banks, government, and other interested parties.
0 kommentar(er)
