Accountant Responsibility


DEFINITION of 'Accountant Responsibility'

The ethical responsibility that an accountant has to those who rely on his/her work. An accountant has a responsibility to the company's management, investors, creditors, outside regulatory bodies, and the integrity of the financial markets.

Accountants are responsible for the validity of the financial statements they work on, and must perform their duties in accordance with all applicable principles, standards and laws.

BREAKING DOWN 'Accountant Responsibility'

The accountant's responsibility outlines who the accountant is working for. Even though an independent accountant may be hired by a company's management, the responsibility of an accountant is owed to many others as well. The duty to uphold principles, standards and laws of accounting is owed to the companies, stockholders and creditors they account for.

An accountant who does not uphold his responsibilities can have broad effects on the accounting industry and the financial markets by weakening general perception of all involved.

  1. Accountant

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  3. Accountant's Liability

    An accountant's legal liability while performing professional ...
  4. Opinion Shopping

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  5. Accounting Method

    The method by which income and expenses are reported for taxation ...
  6. Generally Accepted Accounting Principles ...

    The common set of accounting principles, standards and procedures ...
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  1. Can working capital be depreciated?

    Working capital as current assets cannot be depreciated the way long-term, fixed assets are. In accounting, depreciation ... Read Full Answer >>
  2. Do working capital funds expire?

    While working capital funds do not expire, the working capital figure does change over time. This is because it is calculated ... Read Full Answer >>
  3. How much working capital does a small business need?

    The amount of working capital a small business needs to run smoothly depends largely on the type of business, its operating ... Read Full Answer >>
  4. What does high working capital say about a company's financial prospects?

    If a company has high working capital, it has more than enough liquid funds to meet its short-term obligations. Working capital, ... Read Full Answer >>
  5. How can working capital affect a company's finances?

    Working capital, or total current assets minus total current liabilities, can affect a company's longer-term investment effectiveness ... Read Full Answer >>
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    Working capital is used to cover all of a company's short-term expenses, including inventory, payments on short-term debt ... Read Full Answer >>

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