Importance Of Accounting In Accounting

Accountants play a valuable role in Business Laws and in order to fulfill with the moral and ethical principles, accountants should do all their work in an accurate and detailed manner. They have to prove with their work all the knowledge and experience acquired throughout their professional pathway and in turn, provide confidence to its customers by proving that they are working in a professional manner and within the established laws. The role that an accountant develops is crucial for any business organization or individual, since they bring essential information about their financial status and tax returns. As any professional, accountants are committed to meet the required standards of conduct as well as to comply with all the ethical …show more content…
Through these, the rules, norms, agreements, and operation procedures are determined and developed. These two fundamental standards are entitled as generally accepted accounting principles better known as “GAAP”, and generally accepted auditing standards best known as “GAAS”. By following both principles and working within the legal statues, accountants would attain most favorable results. GAAP, which is a model of a collection of principles, procedures, and standards, is generally utilized by accountants as a manual to gather the financial statements and accounting data. On the other hand, the second accountant principle, GAAS, is more concentrated in guiding auditors to ensure that the reports will have consistency and accuracy. In order to obtain better organization, GAAS is composed of three sections which are general standards, standards of fieldwork, and standards of reporting. Both accounting standards are created with the intention of demonstrating reliable …show more content…
In this case, the accountant committed breach of contract, since he does not fulfill with was stated in the contract and does not work within the terms and conditions of the agreement and towards the benefit of the company. For these reasons and due to his failure of complying with the accounting standards, Patterson must have to pay all the damages and expenses caused by his malpractice and lack of ethics. As one of the major consequences and based in what is stated on the “Ultramares Rule”, Patterson will have to recover Molly Tucker, who has the right to be recovered from all the discrepancies, damages, losses, penalties, and even expenses such as hiring a new certified accountant that will provide and perform the services established in the contract in a reasonable, competent, and professional