Your classmate asserts, "Accountants shouldn't need to take business courses besides accounting, because they are only interested in the financial statements of a company." Defend or refute this statement.
What will be an ideal response?
The classmate is misguided. Auditors need to develop a comprehensive understanding of business. Most business concepts and risks have the potential to affect the financial statements either immediately or in the long run. In addition, a thorough understanding of business risks increases the likelihood of identifying material misstatements in the financial statements. Therefore, an auditor should be familiar with an entity's business environment for numerous reasons, including evaluating the going concern assertion.
You might also like to view...
The Village Green, a women's clothing store, took a map of the city and the checks written by its customers during the last quarter. The store's owner then marked the address of each customer on the map with a map pin. By looking at where the pins clustered on the map, she could determine her trade area. She was engaged in
A. financial demographics. B. customer clustering. C. residential research. D. geographic research. E. customer spotting.
According to Gretel Going, companies that blog should be careful about giving away proprietary information
Indicate whether the statement is true or false
Unemployment is lower in Japan than in France
Indicate whether the statement is true or false.
Arno is judge in a country that follows a civil law system. In Arno's court, the primary source of law consists of
a. administrative decisions. b. a statutory code. c. case precedents. d. the laws of other nations.