Accounting and auditing standards

Accounting and auditing standards are rules and guidelines that organizations follow when recording financial transactions and preparing financial statements. These standards ensure that financial information is accurate, consistent, and transparent, allowing stakeholders—like investors, regulators, and the public—to make informed decisions. Accounting standards dictate how to recognize and report financial activities, while auditing standards guide auditors in reviewing and verifying that these reports are truthful and comply with established regulations. Together, they enhance trust in financial reporting and help maintain order in the financial markets.