Accounting information is prepared by the managers of business which is checked or audited by a group of persons who are known as auditors. The audit of financial information is important so that it can be assured that the provided financial information is free from frauds and errors. As the users of financial information might not be able to understand the technicalities of accounting, so the audited financial statements assure them that the financials are correct and can be relied upon. To discuss: The implication of the concept of objectivity for the information reported in financial statements.

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Chapter 1, Problem 13DQ

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Concept Introduction: Accounting information is prepared by the managers of business which is checked or audited by a group of persons who are known as auditors. The audit of financial information is important so that it can be assured that the provided financial information is free from frauds and errors. As the users of financial information might not be able to understand the technicalities of accounting, so the audited financial statements assure them that the financials are correct and can be relied upon.

To discuss: The implication of the concept of objectivity for the information reported in financial statements.

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