evaluating accounting policy

Dear Experts, How can I evaluate the accounting policy for a specific firm? Is it for example by following a set of standards? Many thanks in advance Omar

Add pictures here
✖
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload

Primarily, the accounting policy must meet the needs of management, the owners and any other users of the resulting financial reports. Secondarily it must meet any requirements of regulators, laws, etc.
If necessary there are two or more sets of books, accounting, cost, tax, etc. They're not intended to mislead anyone, but to provide the types of information the users of the accounting data need to make informed decisions.
--
Paul A. Thomas, CPA
Athens, Georgia
  Click to see the full signature.
Add pictures here
✖
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload
On Feb 20, 2:52 am, snipped-for-privacy@yahoo.com wrote:

External auditors can help you with compliance and financial audits to determine if your company is following a set of standards. Briefly, they would do this through interviews/questionnaires/sampling/testing to assess the risk of non-compliance. It's quite interesting how they do it because they do not have to examine every single document that is generated by accounting transactions in order to give a company a good rating (low-risk).
Add pictures here
✖
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload

BeanSmart.com is a site by and for consumers of financial services and advice. We are not affiliated with any of the banks, financial services or software manufacturers discussed here. All logos and trade names are the property of their respective owners.

Tax and financial advice you come across on this site is freely given by your peers and professionals on their own time and out of the kindness of their hearts. We can guarantee neither accuracy of such advice nor its applicability for your situation. Simply put, you are fully responsible for the results of using information from this site in real life situations.