In the U.S., the Financial Accounting Standards Board sets measurement and repor

Question

In the U.S., the Financial Accounting Standards Board sets measurement and reporting standards for financial statements. For large companies, the SEC imposes some additional standards. The PCAOB is a non-profit corporation created by SOX to develop auditing standards and to oversee the audits of public companies. Similar bodies perform these functions in other countries. A major effort is being made to set worldwide standards.
Describe and evaluate these standards, answering the following questions.
A. What are measurement and reporting standards?
B. Why are measurement and reporting standards important to users of financial statements?
C. What is an audit?
D. Why are auditing standards important to financial statement users?
E. What advantages and disadvantages do you see to having separate accounting and auditing standards for each country?

Explanation / Answer

a) IFRS and US GAAP b) going concern C) audit is checking accounting accuracy D) auditing standars are imporatant because it tells abou strength of financial statement E) advantage is it will be useful for foreign investors also

Related Questions

Navigate

• Browse (All)
• Browse I
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.