AFM311 Lecture Notes - Lecture 7: Market Manipulation, Insider Trading, Financial Statement

• School: University of Waterloo
• Department: Accounting & Financial Management
• Course: AFM311
• Professor: Robert Sproule

Document Summary

Independent body to set and maintain standards: need to product the public interest, designed in the code of conduct, people in the profession must step up to enforce the codes, maintain good standing within society. History of accounting: pre-19th century: bookkeeping, how much money was made in the business, costs, daily business operations, for the owner of the company to assess their own work and profitability, no separation between management and capital. Industrial revolutions: separation of investment and management, more employees, machinery, capital. Increase need for accounting: keep track of what is happening with investment, experts can take what is happening in the company and present to the investors in a way they can understand and trust, add integrity. Distinction between professions: patronage profession, someone wants integrity to the information given, outside party believing in the legitimacy, must occur for the profession to exist, accounting, actuary, engineer, collegiate professions, law, medicine.