ACC 305 Lecture Notes - Lecture 6: Financial Statement, Mci Inc., Internal Control
Document Summary
Management discussion and analysis is an extensive narrative discussion and quantitative analysis from the company"s managers. The sarbanes-oxley act of 2002 imposed responsibilities on managers and auditors. Management is responsible for financial statements and the underlying accounting and control system that generates the financial statements. Independent auditors are responsible for assessing a company"s internal control system, designing audit tests, and forming an opinion about the fairness of the amounts reported in the financial statements. The auditor"s opinion is an essential element for reliability of financial statements in the capital markets. Accountants serve the greater good of society and owe a responsibility of ethics and fairness to all stakeholders, whose interests are sometime conflicting. Accountants face ethical dilemmas, situations in which an accountant must make a decision about what is the right (ethical) action to take in given circumstances. Professional accounting organizations have established codes of ethics for their members. The aicpa has adopted the code of professional conduct (cpc).