Accounting is the language of business. Good corporate governance requires that accounting result in financial reports and related disclosures that provide investors with the financial information they need to make economic decisions.
Auditing is the process by which an independent external accountant performs procedures on the financial reports and related disclosures in an effort to reduce investors’ risk that the management prepared reports and related disclosures misstate financial information that is material to the investors’ economic decisions.
The efficiency and well-being of the global capital markets can be linked directly to the quality of audited financial reports and related disclosures. The quality of that information, in turn, depends directly on the quality of the standards that govern managements’ preparation of financial reports, and the independent auditors’ performance of procedures on those reports.
To read the Council's policy on Independence of Accounting and Auditing Standard Setting please visit the Council Policies page.
