The Role Of Accounting

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In our society the role of accounting continues to have an impact on our daily lives whether it is budgeting our homes, managing a business, or investing. In every aspect of business we are surrounded by decisions that circulates around the concepts of accounting. Accounting has gained the reputation of being the language of business. I believe that accounting has earned this reputation due to its function of being an information system that measures financial activities, assist in data reporting, and the measuring of performance within a business (Harrison, 2014). In my opinion, this language of business communicates from one accounting statement to another.
The core of accounting orbits around the basic financial statements of an organization …show more content…

The primary users in financial accounting are external users such as stockholders, creditors and government regulators. The primary accounting products used are financial statements, which fulfils the mission of helping the external users in making economical decisions concerning lending and investing. The operations in financial accounting is regulated by the generally accepted accounting principles (GAAP), which determines the content and the formatting of each financial statement (Braun, and Tietz, 2014). The financial data is based on its external users’ historical transactions, however the data must be objective and reliable. These historical transactions are seen as the “unit” of the collaboration of all the financial statements providing a snap shot of the business as a whole (Braun, and Tietz, 2014). It is important to recognize that the reports are generated quarterly and yearly, then audited by an independent certified public accountant. In addition, the Securities and Exchange Commission (SEC) sanction all public companies to disclose annual audited reports of their financial statements. According to history, Securities and Exchange Commission (SEC), was create by United States Congress to regulate exchanges, brokers, and markets, while monitoring financial disclosures (Foner, 1991). I believe these audit measures are necessary to protect the public investing and lending …show more content…

The SOX’s mission is to restore the public’s trust and confidence in investing and trading, while holding corporations, their managers, and their auditors accountable for any unethical actions.( ……..). It is with great expectation that regulations such as SOX, continue to develop and sustain the integrity of accounting practices. I believe that prevention is the key in decreasing the activities of fraud.
As we operate in business and study the structures of accounting, it is necessary to focus on the current trends. Recently, the sustainability and the social responsibility of corporations and consumers have be magnified in the recent

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