Accounting Research Paper Example | Topics and Well Written Essays - 2000 words

Accounting - Research Paper Example paration of Financial Statement and consistent with this, it is essential for firms to reveal separately in the statement of income for the record of the inventories which has been small persistence thing. Additionally, this rule also demands for sufficient data which influences the important measures with that data which can additional support in accepting a situation. The risk of not including the inventory write-down in the financial statement is that the investors may over-anticipate income firmness and thus lead to decisions that may create strong unethical situations. Beside this, such condition can direct towards many ethical and financial problems for example excessive manager’s payments, concealment fraud penalties, losing investors self-assurance in organization with loosing value of brand in addition to goodwill. Accountants who do not consider complete according standards while making financial statement, are not only breaching the according standards but also are breaching the trust and ethics which is considered as inevitable in the â€Å"professional behavior† (Little, 2008, p. vii) of the people. As being element of Practicing Business, it is suggested that CEO and CFO of the business should think such influence of the â€Å"Internal Revenue Service† (Internal Revenue Service Data Book, no date, p. 32). This IRM gives an outline and common knowledge of GAOs annual Financial Statement Audit of the â€Å"Internal Revenue Service† (Internal Revenue Service Data Book, no date, p. 32) (IRS). As the country’s tax collector, the IRS has the liability of collecting taxes, enforcing the nation’s tax laws and processing tax return. The GAO performs annually audits of the financial statements of IRS in keeping the CFO Act of 1990, as extended by the â€Å"Government Management Reform Act of 1994† (Guthrie et al., 2005, p. 357) Appropriate to this Act, the General Accounting Office (GAO) opines on the fiscal statements of the IRS in the report financial