Scenario:
"Some people believe that the audit industry has fallen out of touch with the realities of business. They believe that accounting standards were developed for a manufacturing environment and are not fitted for our modern needs. As a result, they contend that financial statements have turned into a game in which all companies try to match earnings forecasts set by financial analysts." (Albrecht, 2008)
Questions:
- Do you believe these statements are true, or do you think that they are too cynical? Explain your answer.
- How do feel the accounting standards can be modified for our modern needs?
- Please respond to a classmate who has a different opinion than you regarding these statements and respond to the issues raised.