Auditors are required to be “independent” and management accountants are called to be “objective”. how these...

Auditors are required to be “independent” and management accountants are called to be “objective”. how these two concepts are related and how they differ.

Solutions

Expert Solution

Management accountants keep track of incomes and expenses of a company. They review and analyze information from financial statements of a company. They take care of the daily financial transactions of a company. Their duties include helping management in budgeting, planning, strategizing, decision making and manage company's investments. Basically they assist the management of the company towards achieving its overall objectives.

Auditors, on the other hand, review the financial statements prepared by the management of the entity. The major objective of an audit is to give a true and fair view opinion on the financial statements. It is very important that auditors stay independent during the course of audit. Only then can a true opinion be expressed on the correctness of financial information. They shouldn't be biased and their opinion shouldn't be influenced.

While management accountants work towards achieving objectives of the company, the auditors ensure they are working in accordance with all the statutory and regulatory requirements.

This is why it is said that management accountants are to be objective and auditors are to be independent.

ekkarill92 answered 1 year ago

Next > < Previous

Related Solutions

What overlap in skills exists, if any, between auditors and accountants? How do the responsibilities of auditors and accountants differ? How are they similar?

Discuss the differences between auditing and accounting. What overlap in skills exists, if any, between auditors and accountants? How do the responsibilities of auditors and accountants differ? How are they similar?

Q1 A) Cost & Management Accountants are often required for providing information to the business management for...

Q1 A) Cost & Management Accountants are often required for providing information to the business management for the sake of making decisions. For this purpose, accountants must clearly understand different costs involved in business decisions and their connection to various situations in decision making. Required: Discuss and differentiate in detail between Sunk Cost and Relevant Cost with the help of relevant examples from real-life. B) Dawn Flour Mills specializes in producing flour and related products. Following is the data provided by...

Objective 4 - Understand the importance of ethical behavior for management accountants. Emily Henson, controller of...

Objective 4 - Understand the importance of ethical behavior for management accountants. Emily Henson, controller of an oil exploration division, has just been approached by Tim Wilson, the divisional manager. Tim told Emily that the projected quarterly profits were unacceptable and that expenses need to be reduced. He suggested that a clean and easy way to reduce expenses is to assign the exploration and drilling costs of four dry holes to those of two successful holes. By doing so, the...

The management of Flint Instrument Company had concluded, with the concurrence of its independent auditors, that...

The management of Flint Instrument Company had concluded, with the concurrence of its independent auditors, that results of operations would be more fairly presented if Flint changed its method of pricing inventory from last-in, first-out (LIFO) to average-cost in 2017. Given below is the 5-year summary of income under LIFO and a schedule of what the inventories would be if stated on the average-cost method. FLINT INSTRUMENT COMPANY STATEMENT OF INCOME AND RETAINED EARNINGS FOR THE YEARS ENDED MAY 31...

The management of Nash Instrument Company had concluded, with the concurrence of its independent auditors, that...

The management of Nash Instrument Company had concluded, with the concurrence of its independent auditors, that results of operations would be more fairly presented if Nash changed its method of pricing inventory from last-in, first-out (LIFO) to average-cost in 2020. Given below is the 5-year summary of income under LIFO and a schedule of what the inventories would be if stated on the average-cost method. NASH INSTRUMENT COMPANY STATEMENT OF INCOME AND RETAINED EARNINGS FOR THE YEARS ENDED MAY 31...

management accountants

1. Do you think management accountants are involved in tax planning decisions such as those referred to above?2. Do you think tax avoidance is ever ethical? Is it sustainable? Across Europe, just how much – or little – US multi-national firms are paying in taxes is coming under intense scrutiny according to an article published in the Washington Post. Most of the investigations revolve around the issue of ‘transfer pricing’, when one part of a large company sells goods or...

Please discuss whether management accountants have the same ethical responsibilities and external auditors, please support your...

Please discuss whether management accountants have the same ethical responsibilities and external auditors, please support your claims.

How do public accountants differ from management accountants? (50-100 words minimum)

1.Explain the importance of internal controls to auditors and management. 2.How do auditors gain an understanding...

1.Explain the importance of internal controls to auditors and management. 2.How do auditors gain an understanding of an entity's internal control?

A random sample of 165 accountants and auditors had an average salary of $70,130 and a...

A random sample of 165 accountants and auditors had an average salary of $70,130 and a standard deviation in salary of $14,400. Another random sample of 182 loan officers had an average salary of $67,960 and a standard deviation in salary of $13,600. Construct a 98% confidence interval for the difference in mean salary between the two professions.

Subjects