Question

In: Accounting

Ethical professional judgement should not take into account: a) the users of financial statements, and their...

Ethical professional judgement should not take into account:

a) the users of financial statements, and their specific information needs.

b) the performance targets for the quarter's earnings.

c) the nature of the organization's operations.

d) the organization's reporting constraints.

Solutions

Expert Solution

b) the performance targets for the quarter's earnings
Ethical professional judgement should not take into account the performance targets for the quarter's earnings because it is immaterial, professional judgement as the application of relevant training ,knowledge and experience within the context provided by accounting, auditing and ethical standards


Related Solutions

Define 'professional judgement' and describe TWO areas where professional judgement is applied when planning an audit of financial statements.
Define 'professional judgement' and describe TWO areas where professional judgement is applied when planning an audit of financial statements. 
1:        Users of financial statements Identify at least three types of users of financial statements. Describe their...
1:        Users of financial statements Identify at least three types of users of financial statements. Describe their primary use of the financial statements and how the misstatement of those statements might injure the user. 2:        Overview of the Financial Statement Audit What is a financial statement audit, and what is the overall objective of the audit? What must the auditor do to accomplish this objective?
Financial statements should be relevant for their users, yet there is increasing debate about whether they...
Financial statements should be relevant for their users, yet there is increasing debate about whether they are relevant in today's digital world. Identify and discuss four key criticisms of financial reporting based on the current IFRS standards.
Investors, creditors, and other users of financial statements often argue that there should be more transparency...
Investors, creditors, and other users of financial statements often argue that there should be more transparency on published financial statements. This argument is based, at least some extent, on concerns that management has too much leeway in the selection of accounting alternatives. Team 1: Argue that management should continue to be allowed to choose among different accounting alternatives because full disclosure in the notes to financial statements provides sufficient transparency.
Ethics and Professional Judgment in Accounting. Accounting professionals will use judgement often to make ethical decisions....
Ethics and Professional Judgment in Accounting. Accounting professionals will use judgement often to make ethical decisions. Integrity, objectivity and professional judgement are the core values of GAAP. Professional judgement are based on the information gathered and probing question to make a audit judgment. Professional judgment is what makes an accountant a professional and it underlies the fundamental obligation to protect the public interest. The profession’s codes of ethics call for independent judgments and to not subordinate professional judgment to a...
a) For which classification of users are financial statements prepared? What characteristic of these users makes...
a) For which classification of users are financial statements prepared? What characteristic of these users makes the development of generally accepted accounting principles necessary? b) Describe the three concepts from the Conceptual Framework that work together to create accrual accounting
2. Explain why consolidated financial statements are useful to the users of financial statements (as opposed...
2. Explain why consolidated financial statements are useful to the users of financial statements (as opposed to just the parent company’s separate financial statements.
What are the differences in the financial statement users for federal financial statements and state and...
What are the differences in the financial statement users for federal financial statements and state and local financial statements?
What is the purpose of a business's financial statements? Who are the primary users of financial...
What is the purpose of a business's financial statements? Who are the primary users of financial statements?
Professional judgement plays an important role in financial reporting. Identify four areas in which the accountant...
Professional judgement plays an important role in financial reporting. Identify four areas in which the accountant preparing financial statements must make professional judgements that will affect the content of the statements. You are required to indicate at least two affected accounts in each area you identified.             
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT