Accountant Responsibility

Accountants Responsibility Introduction The restrainers primary feather role is to verify the in frameation in the pecuniary statements in accordance with the principally Accepted Auditing Standards (GAAS) and to warrant that they conform to Generally Accepted Auditing Principles (GAAP) which are both provided by the American add of Certified Public Accountants (AIPCA). The control is cause for validity of the monetary statements. The controllers to a fault have a professed(prenominal) business to resolve the public with integrity, objectivity and with due diligence. Accountants also have a state to detect and report deceitful 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 turn Commission, 2008). Accountants Responsibility Responsibility to trey pa rties three party entities such as potential investors, creditors and banks will commonly commit on the financial statements prepared by the accountants to pose closings. The accountants report provides assurance that the financial reports can be relied on.

Generally, the accountant is not liable in claim 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 bank on the reports the accountant may have prepared to make their investment decisions. though hired by the management , his or her responsibility extends 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. foremost is the ultramares privity rule where the accountant is only responsible to the client. Secondly, is the foreseeability approach where the accountant...If you hope to get a full essay, auberge it on our website: OrderCustomPaper.com

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