TRUE AND FAIR VIEW OF ACCOUTING STATEMENT
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You have discovered that a business unit for which you are responsible is still engaged in irregular accounting practices, and there is evidence of bribery of local officials. Discuss the applicable laws that have been potentially violated and the ethical dilemma that this situation may create for the organization. Provide an example of a similar case and discuss the outcome and consequences to support your argument.
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//As per the directions, we will discuss about the applicable laws that have been potentially violated and the ethical dilemma that this situation may create. We should know that it is very essential that all the accounts must present accurate and fair picture of the business affairs. So, we write about how to develop the potentiality to interpret such accounts.//
TRUE AND FAIR VIEW OF ACCOUTING SATEMENT
Since each user of accounts may have a different focus in viewing the financial statements, it is necessary that the accounting statements are not biased in favour of any one interested group. It is therefore, necessary for an accountant to ensure that the accounts represent "true and fair" picture of the affairs of business. It may often be difficult to draw a clear line between true and untrue, and fair and unfair accounts; yet if the accountant prepares the financial statements free from any bias in favour of any user group and remains faithful to his own conscience, chances are that the accounts thus prepared will be true and fair. As accountants are but human prone to err, there would always be the probability that the accounts presented are indeed less than true and fair. A reader of accounts must therefore, develop the capability to see through such accounts or read between the lines to offset the biased ...
Education
- MBA (IP), International Center for Internationa Business
- BBA, University of Rajasthan
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