chapter 1 be - SOLUTIONS TO BRIEF EXERCISES BRIEF EXERCISE...

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SOLUTIONS TO BRIEF EXERCISES BRIEF EXERCISE 1-1 Financial Accounting Managerial Accounting Primary users External users Internal users Types of reports Financial statements Internal reports Frequency of reports Quarterly and annually As frequently as needed Purpose of reports General-purpose Special-purpose information for a particular user for a specific decision Content of reports Generally accepted accounting principles Relevance to decisions Verification Annual audit by certified public accountant No independent audits BRIEF EXERCISE 1-2 One implication of SOX was to clarify top management’s responsibility for the company’s financial statements. CEOs and CFOs must now certify that financial statements give a fair presentation of the company’s operating results and its financial condition. In addition, top management must certify that the company maintains an adequate system of internal controls to safeguard the company’s assets and ensure accurate financial reports. Also, more attention is now paid to
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chapter 1 be - SOLUTIONS TO BRIEF EXERCISES BRIEF EXERCISE...

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