Sample Essay

Emphasis is laid on investors on the quality of work rather than the quantity of work. The elements of content management and information flow must be based on proper and appropriate rules. The profession is involved in debate over developing an understanding that rule based and principle based accounting standards should converge and should not be considered as exclusive to each other.

The ways in financial reporting is currently done is likely to change in the future as the increased liability of corporations’ management would provoke them to present their company’s balance sheets by providing alternative views as supporting documents to the state of their company assets and liabilities along with detailed information from the management to help investors in understanding the parameters and future conditions on which they are relying to predict their forecasts.  This would surely allow flexibility to accountants and auditors to offer greater insight in the company. Therefore we can say that the profession of accounting is under extreme profession has been subject to severe criticism for not delivering what is supposedly understood by investors regarding its role in auditing of public companies. SOX can be considered as a viable act because both the investors and general public get benefit from it but its implementation cost to small businesses can be treated as its disadvantage.

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