MGMT 1A Chapter Notes - Chapter 1.2: International Financial Reporting Standards, Accounting, Certified Public Accountant
Document Summary
A sound, well-functioning economy depends on accurate and dependable financial reporting. Regulators & lawmakers were concerned that economy would suffer, if investors lost confidence in corporate accounting (because of unethical financial reporting) Sarbanes-oxley act (sox) : policy meant to reduce unethical corporate behavior and decrease the likelihood of future corporate scandals. Top management must now certify the accuracy of financial information. More severe penalties for fraudulent financial activity. Increased the independence requirements of outside auditors who review accuracy. Increased oversight role of boards of directors of corporate financial statements. Ethics - the standards of conduct by which actions are judged as right or wrong, honest or dishonest, fair or not fair. Effective financial reporting depends on sound ethical behavior. Generally accepted accounting principles how to report economic events. Generally accepted accounting principles (gaap) : common set of standards that indicate. Financial accounting standards board (fasb) = primary accounting standard-setting.
