maintaining accounting records by hand

person who has an interest in a company

amount earned is greater than the amount spent

form of accounting which produces information for external use through financial statements

produces information mainly for company/management use

accounting method used to record tax transactions

common set of accounting rules and procedures; needed in accounting to maintain accuracy and consistency of financial reports

actual cost of an item needs to be stated, not its current value

accountants must only record information which can be verified

all information which is relevant to financial statement must be included in the financial statement

assumption a company intends to continue operations

duty to uphold rules and regulations based on moral values

examines financial records of companies to ensure proper management of funds; usually provides information to law enforcement if necessary

specializes in examining accounting transactions for law enforcement