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 scandals, the true and fair view of financial information disclosed to the public has been questioned. Regulators and governments have responded by issuing new regulations and legislation.

Required:

Discuss the above statement by analysing the role of the board of directors in the preparation of financial statements and the prevention 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.