How do we ensure that reports to external users fairly present business activities Full and fair reporting involves reliable financial statements that accurately report a companys business activities Information to describe, interpret, and extend that information also is important Audits and intern...

Full and fair reporting should help external users understand the decisions made by managers It is ...

How do we ensure that reports to external users fairly present business activities? Full and fair reporting

Question:

How do we ensure that reports to external users fairly present business activities?
Full and fair reporting involves reliable that accurately report a company’s business activities. Information to describe, interpret, and extend that information also is important. Audits and internal controls also help ensure full and fair reporting. To what extent should full and fair reporting protect external users from poor management decisions? Does full and fair reporting guarantee that will not suffer losses from their contractual relations with a business? Why or why not?

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial... Stakeholders
A person, group or organization that has interest or concern in an organization. Stakeholders can affect or be affected by the organization's actions, objectives and policies. Some examples of key stakeholders are creditors, directors, employees,...