Question

Do you think that the importance of adhering to accounting and auditing standards is fully embraced by governmental entities, why or why not?

Answer 1

Unlike most private sector organizations,government entities must be responsive to a number of different group and organizations.All forms of monitoring includes collecting and interpreting data, and this oversight function is often performed through information provided in government reports.Among the most important types of communication is the annual financial report,which present the financial position,operating result,and cash flows for a particular accounting periods.All governments including school districts,develop their annual financial report in accordance with the principles established by standard setting authorities to provide consistency and comparability for users.

The information provided by government should contribute to accountability in following areas:

1) Financial position and result of operation

2) Actual financial result compared with adopted figures

3) compliance with finance related laws,rules and regulations

4) Efficiency and effectiveness of operations

5) Maintenance of government assets

Consistency in financial reporting by government is provided through accounting standards.So government organization should adhere to these accounting standards.