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Ethics in Accounting
The purpose of accounting reports is to provide management and investors with accurate and timely information on the financial status of their company. Sometimes, management uses accounting to hide problems. This approach not only violates accounting standards but also hides the true problem from investigation. It does not solve the base cause of the problem. It allows the problem to increase, often times to a point where the subsistence of the company is in jeopardy. Unfortunately the people that normally have to face the consequences of deceptive financial reports are the investors.
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