Statement to analyse:
Accounting is the collection, summarization and communication of a firm’s financial information for the management, stakeholders, individuals and others to help them make sound financial decisions.
However, following a series of recent financial scan- dals1, the true and fair view of financial information disclosed to the public has been questioned. Regulators and governments have responded by issuing new regula- tions and legislation
Critically examine the above statement by analysing the role of the auditor and the role of the board of directors in the preparation of financial statements and the pre- vention of fraud. In your answer, you should also examine the actions taken by the regulatory authorities and the government in the UK in response to these scandals.
