e Ca de Wte a cne to two-page article for a business journal explaining what is meant by the political process for establishing acconting standards. Be sure to include in your article a discussion of the need for the FASB to balance accounting considerations and economic coasequences Ethics Case 1-8 The auditors' responsibility L01-4 It is the responsibiliry of management to apply accounting standards when communicating with investors and creditors through financial statements. Another group, auditors, serves as an independent intermediary to help ensure that management has in fact appropriately applied GAAP in preparing the company's financial statements. Auditors examine (audit) financial statements to express a professional. independent opinion. The opinion reflects the auditors' assessment of the statements fairmess, which is determined by the extent to which they are prepared in compliance with GAAP Some feel that it is impossible for an auditor to give an independent opinion on a the anditors' fees for performing the audit are paid by the company. In addition to the audit fee, quite often the auditor performs other services for the company such as preparing the company's income tax returns. company's financial statements because Required: How might an auditor's ethics be challenged while performing an audir? Judgment Case 1-9 Qualitative characteristics L01-7 Generally accepted accounting principles do not require companies to disclose forecasts of any financial variables to external Mps asource.com/apvobooks/9781260029932pietrom-438-44 Page 2 of 6