posted by Avatar on May 29
Events in the financial markets have reshaped accounting and the advent of computer technology has added to the risks that are involved in dealing and handling with such financial information. Such information can be used against a firm for personal or criminal needs by people inside and outside of the company who knows how to utilize that information. Manipulation is also addressed by these practices for it aims to establish a set of checks and balances within the system allowing financial experts to quickly discover and deal with such threats (inconsistencies). Insider trading in stock markets have risen globally and the recent sub-prime lending crisis that has crippled the US economy are just some of the problems that have deep roots in flaws within the financial and accounting systems of companies who should have been able to determine the abnormalities before they caused much problems.
