Week 1 DB1 Corporate Malfeasance

Audits can also be performed to assure and assess the

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corporate ethics lapses that might occur in the future. Audits can also be performed to assure and assess the level of accuracy of the financial statements. Thus the presentation and mandatory disclosure presented in the statements should be fairly disclosed and the information and values provided should accurate and fair till date and according to GAAP(Generally Accepted Accounting Principles). Financial Accounting has the following characteristics: Financial Accounting Information for internal and external users General-purpose financial statements Statements are highly aggregated Relatively long reporting periods Report on past decisions Follows generally accepted accounting principles Must conform to external standards Emphasizes objective data Managerial Accounting Information for internal users Special-purpose information and reports Information is aggregated or detailed, depending on need Reporting periods are long or short, depending on need Oriented toward current and future decisions Not constrained by generally accepted accounting principles No external standards Encourages subjective data, if relevant
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Financial Accounting differs from Managerial Accounting. Even though they differ, the SOX framework prevents fraud by the reporting requirements and the internal/external audits.
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Audits can also be performed to assure and assess the level...

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