Chapter

14.2. The Accounting Profession*

From IntroductionToBusiness OP 8D04gAa

Concepts

1. What are the roles and differences between public and private accountants?

   "Although today’s accountants still must love working with numbers, they now work closely with their clients to not only prepare financial reports but also help them develop good financial practices.

2. Why did accounting irregularities become a major concern for companies and investors?

   "Although our attention was focused on big-name accounting scandals in the late 1990s and early 2000s, an epidemic of accounting irregularities was also taking place in the wider corporate arena. The

3. How did the Sarbanes-Oxley Act reshape accounting and financial reporting?

   "Over the past 15 years, a number of accounting reforms have been put in place to set better standards for accounting, auditing, and financial reporting. Investors, now aware of the possibility of var

4. What additional steps did the accounting profession take to prevent future abuses?

   "Other regulatory organizations also took steps to prevent future abuses. In September 2002, the AICPA Auditing Standards Board (ASB) issued expanded guidelines to help auditors uncover fraud while co