How companies carry out fraudulent activities despite the presence of GAAP
“GAAP principles have been developed by the accounting profession over the years to provide a consistent system of financial reporting in a constantly changing environment” From the earliest days of accounting up through the first third of the 20th century, GAAP were developed through common usage.
The primary purpose of GAAP is to help accountants provide relevant and comparable information. In other words, financial accounting practices should produce information that is relevant to the decision made by financial statement users. GAAP identify uniform practices that make financial statements more understandable and useful.
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