Why is financial reporting important for firms? What impact might financial reporting have on a firm's stock price?
Describe the Sarbanes-Oxley Act of 2002.
How did it affect auditors and managers of publicly owned firms? Explain the basic accounting equation.
What does each component represent? What is owner's equity?
Describe the interaction between (a) auditors, (b) managers, and (c) the board of directors in ensuring accurate financial reporting.