Intermediate Accounting (16th Edition)

Published by Wiley
ISBN 10: 1118743202
ISBN 13: 978-1-11874-320-1

Chapter 1 - Financial Accounting and Accounting Standards - Review and Practice - Questions - Page 23: 24


Ideally, concerns of fraudulent financial reporting have over the years existed because it can adversely affect the entire process of financial reporting. Failure to provide truthful, honest and accurate financial information to users can lead to inappropriate allocation of resources in our economy without forgetting the fact that it can lead to making the wrong decisions concerning investments.

Work Step by Step

Additionally, failure to detect practices of fraud can lead to additional government oversight of the accounting profession.
Update this answer!

You can help us out by revising, improving and updating this answer.

Update this answer

After you claim an answer you’ll have 24 hours to send in a draft. An editor will review the submission and either publish your submission or provide feedback.