The Sources for Accounting Research Paper Example | Topics and Well Written Essays - 1250 words

The Sources for Accounting - Research Paper Example The accountants need to undertake the researchers for identifying the area where the change can make and suggest as per the requirement.   The reports produced by the financial regulatory bodies, used as authentic sources by the researchers. The financial regulatory bodies like International Accounting Standards Board (IASB), International Auditing and Accounting Standards Board (IAASB) used to prepare the regulations, which followed by the companies to prepare the financial statements and follow the process of auditing. They used to prepare the reports, which is suggestive for the development of the financial process. The accountants use the reports as a source to identify the current accounting practices. In the year 2008, IAASB has prepared a report for identifying the problems of auditing the fair value estimates. For the financial crisis of 2007-2010, one of the causes identified by the bodies was the wrong process of auditing by the auditors in the area of fair value accounti ng. IAASB has recommended that the auditors should understand the entity means the assets and the environment of the company to value the assets. The auditor has to find out about the internal control of the company, based on this an estimation can be made about the asset. The auditor should assess the risks associated with that material, also should analyze the expertise of the concerned person who made the estimate about the asset. The auditor should also take the representation of the management in consideration, should assess their plan using the asset (IAASB, pp.1-11). The accounting professionals prefer the report because it was prepared by a professional organization, which is also a regulatory body of the accounting practices. Sources from Company Websites When a researcher wants to analyze the financial condition of a company, then they can find it from various sources. They can find it on many blog sites, where the analysts analyze those statements from their personal view point. If the researchers use the sources then they may not find the reason behind their analysis, the frameworks used by the bloggers etc. In spite of all these, the researchers use the reports published by the company directly. Those reports published by the company management contents the notes related to the financial statements. The notes regarding the statements show all the reasons behind the entries in the financial statements. All the related information about the financial statements is included in the annual report. As an addendum, the researcher also gets the information about the ownership of the organization, the compensation of the executives, the size, and operations of the company etc, which is important when the person wants to analyze the company and take the decision about that. When a researcher wants to take a decision about whether to invest or not in Coca-Cola then he can find the information on many websites, or he can take the suggestion from the existing i nvestors. However, the investors’ suggestion may drive the decision of the investor in a wrong way.  Ã‚