In order for individuals to rely on the financial informationfor making important financial decisions, the information itselfmust have integrity: it must be complete, factual and without bias.The integrity of accounting information is enhanced in severalways. First, the information is prepared in accordance withacceptable standards set forth by the accounting industry. Theseinclude standards for the preparation of the accountinginformation, an internal control structure, and audits of thefinancial statements by independent outside audit firms. Second,professional accounting organizations play a role in adding to theintegrity of accounting information by establishing code of conductfor their members. Lastly, the personal competence, judgment andethics of accountants ensure that the accounting information can berelied upon as affair representation of the firm's financialcondition. We can apply our accounting course to our business andto our personal financial strategy. What are the one or two mostimportant ideas that emerged from this discussion?
In order for individuals to rely on the financial informationfor making important financial decisions, the information itselfmust have integrity: it must be complete, factual and without bias.The integrity of accounting information is enhanced in severalways. First, the information is prepared in accordance withacceptable standards set forth by the accounting industry. Theseinclude standards for the preparation of the accountinginformation, an internal control structure, and audits of thefinancial statements by independent outside audit firms. Second,professional accounting organizations play a role in adding to theintegrity of accounting information by establishing code of conductfor their members. Lastly, the personal competence, judgment andethics of accountants ensure that the accounting information can berelied upon as affair representation of the firm's financialcondition. We can apply our accounting course to our business andto our personal financial strategy. What are the one or two mostimportant ideas that emerged from this discussion?
Unlock all answers
