Scenario:

"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 financial statements have turned into a game in which all companies try to match earnings forecasts set by financial analysts." (Albrecht, 2008)

Questions:

Do you believe these statements are true, or do you think that they are too cynical? Explain your answer.

How do feel the accounting standards can be modified for our modern needs?

Please respond to a classmate who has a different opinion than you regarding these statements and respond to the issues raised.