Share
Explore BrainMass

This post addresses auditing related issues.

In today's world what would happen to a company that looks at accounting as a necessary evil and audits as a pure waste of time?

How should the Senior officers of a corporation respond to questions from Board Members, Stockholders and External auditors?

How many accounting methods can you think of that can be used by Corporations other than GAAP?

Solution Preview

In today's world what would happen to a company that looks at accounting as a necessary evil and audits as a pure waste of time?

There is a greater scrutiny in today's world, now more than what has ever been, for companies to produce relevant, reliable financial statements. The public wants to invest in companies, but they aren't willing to do so if there is any hint at all that they may be misled by the company. When companies look at accounting as a necessary evil, or when they look at audits as nothing but a waste of time, everyone suffers. When companies have this attitude, they are less willing to cooperate with the auditors. Employees take longer to get auditor requested data, and the accountants are seen as being an intrusion. When this takes place, accounting related functions take longer, ...

Solution Summary

This solution answers the following three questions:

In today's world what would happen to a company that looks at accounting as a necessary evil and audits as a pure waste of time?

How should the Senior officers of a corporation respond to questions from Board Members, Stockholders and External auditors?

How many accounting methods can you think of that can be used by Corporations other than GAAP?

$2.19