MGT 11A Chapter Notes - Chapter 1: Financial Accounting Standards Board, International Accounting Standards Board, International Financial Reporting Standards
Document Summary
Identifying (select transactions and events) -> recording (input, measure, and log) -> Financial accounting: serves external users by providing general purpose financial statements. General-purpose: broad range of purposes for these statements. Managerial accounting: serves the decision making needs of internal users. Internal reports designed for needs of managerial/executive employees. Ethics: beliefs that separate right from wrong. Accepted standards of good and bad behavior. Opportunity: commit fraud with a low risk of getting caught. Pressure (incentive): pressure or have incentive to commit fraud. Rationalization (attitude): justifies fraud or does not see its criminal nature. Sarbanes-oxley act (sox): help stop financial abuses. Requires documentation and verification of internal controls and emphasizes effective internal controls. Management must issue a report stating that internal controls are effective. Auditors must verify effectiveness of internal controls. Audits: analysis and report of an org"s accounting system, records, and reports using various tests. Dodd-frank wall street reform and consumer protection act (dodd-frank):
