Question: 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

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?

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