auditor is retained and paid by the client thereby making the auditor beholden

Auditor is retained and paid by the client thereby

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auditor is retained and paid by the client, thereby making the auditorbeholden to the client and its management. As a consequence the auditor,though he or she might not realize it, ends up seeing things through theeyes of management. While it is still too early to determine which viewwill ultimately turn out to be correct, SOX will undoubtedly significantlyaffect the accounting profession.
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International Accounting Standards A   truly   global   economy   emerged   during   the   1990s,   as   many   U.S. companies   generated   significant   amounts   of   revenue   and   profits   in foreign markets. Multinational companies are faced with decisions on the allocation of resources to their most efficient uses. These allocations cannot   be   accomplished   without   accurate   and   reliable   financial information.   Companies   seeking   capital   or   investment   opportunities across   national   boundaries  face   cost   and   time issues.   Capital-seeking firms must reconcile their financial statements to the accounting rules of the nation in which they are seeking capital, and investors must identify foreign reporting differences. The increasingly global economy requires that   this   process   be   simplified.   Thus   there   is   a   push   to   harmonize international accounting standards . The IASB is an independent private-sector body that was formed in 1973 to achieve this purpose. Its objectives are 1 . To   formulate   and   publish   in   the   public   interest   accounting standards to be observed in the presentation of financial statements and to promote their worldwide acceptance and observance 2 . To   work   generally   for   the   improvement   and   harmonization   of regulations, accounting standards, and procedures relating to the presentation of financial statements 45 These objectives have resulted in attempts to coordinate and harmonize the activities of the many countries and agencies engaged in setting accounting standards. The IASB standards also provide a useful starting point for developing countries wishing to establish accounting standards. 46
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  • Summer '15
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  • Accounting, Accountant, Financial Accounting Standards Board, Accounting  Principles  Board

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