Financial information for important financial decisions

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Reference no: EM131212814

In order for individuals to rely on the financial information for making important financial decisions, the information itself must have integrity: it must be complete, factual and without bias. The integrity of accounting information is enhanced in several ways. First, the information is prepared in accordance with acceptable standards set forth by the accounting industry. These include standards for the preparation of the accounting information, an internal control structure, and audits of the financial statements by independent outside audit firms. Second, professional accounting organizations play a role in adding to the integrity of accounting information by establishing code of conduct for their members. Lastly, the personal competence, judgment and ethics of accountants ensure that the accounting information can be relied upon as affair representation of the firm's financial condition. We can apply our accounting course to our business and to our personal financial strategy. What are the one or two most important ideas that emerged from this discussion?

Reference no: EM131212814

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