Some people believe that the audit industry has fallen out of touch with the realities of business.

Question:

Some people believe that the audit industry has fallen out of touch with the realities of business. They believe that accounting standards were developed for a manufacturing environment and are not fitted for our modern needs. As a result, they contend that have turned into a game in which all companies try to match earnings forecasts set by financial analysts. Are these statements true, or do you think that they are too cynical?

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...