Financial reporting

The world would be better off with principles based standards. In the field of corporate governance countries are considering setting out a guidance of best practices so that companies may understand and know why they are required to do something with room for professional judgment. This way one can avoid the mentality of ‘ticking the box’ and complying with rules to say it’s right. In auditing there is the concept that what is correct need not be fair and therefore the opinion of “true and fair” is a difficult decision to be made by the auditor based on his professional judgment.

http://www.businesstoday.lk/article.php?article=3584

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About surenraj

“Views expressed are my own”
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