Accountant Responsibility

Accountants Responsibility Introduction The restrainers primary feather role is to verify the in bounceation in the pecuniary statements in accordance with the principally Accepted Auditing Standards (GAAS) and to see to it that they conform to Generally Accepted Auditing Principles (GAAP) which are both provided by the American add of Certified Public Accountants (AIPCA). The restrainer is have for validity of the monetary statements. The controllers too have a master key business to resolve the public with integrity, objectivity and with due diligence. Accountants also have a responsibility to detect and report double-faced and illegal activities their clients whitethorn be engaged in. Apart form ensuring the correctness of the financial statements, the accountant also has a responsibility to ensure that an arrangement has strong and effective internal controls (Securities and throw Commission, 2008). Accountants Responsibility Responsibility to trey parties third gear party entities such as potential investors, creditors and banks will normally commit on the financial statements prepared by the accountants to ride closings. The accountants report provides assurance that the financial reports can be relied on.

Generally, the accountant is not liable in start out with a third party as at that place is not contract between the accountant and the third party. However, the accountant has a statutory liability to investors and other third parties who depone on the reports the accountant may have prepared to make their investment decisions. though hired by the management, his or her responsibility exten! ds that of the management to those who rely on the financial statements in their decision making (John, 2003). there are three rules that are usually applied in relation to accountants responsibility to the third party. beginning(a) is the ultramares privity rule where the accountant is only responsible to the client. Secondly, is the foreseeability approach where the accountant...If you desire to get a full essay, auberge it on our website: BestEssayCheap.com

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