Explain how rule-based accounting standards differ from principle-based standards. How might fundamentally changing accounting standards from bright-line

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Explain how "rule-based" accounting standards differ from "principle-based" standards. How might fundamentally changing accounting standards from bright-line rules to principle-based standards help prevent another Enron-like fiasco in the future? Some argue that the trend toward adoption of international accounting standards represents a move toward more "principle-based" standards. Are there dangers in removing "bright-line" rules? What difficulties might be associated with such a change?
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Auditing Cases An Interactive Learning Approach

ISBN: 978-0133852103

6th edition

Authors: Mark S. Beasley, Frank A. Buckless, Steven M. Glover, Douglas F. Prawitt

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