Management and Organizational Studies 3370A/B Study Guide - Midterm Guide: Forensic Accounting, Donald Cressey, Harmonized Sales Tax

• School: Western University
• Department: Management and Organizational Studies
• Course: Management and Organizational Studies 3370A/B
• Professor: Maria Ferraro

Document Summary

Help decision makers measure the costs and benefits of decision options. Two classes of decision makers: outside the firm, inside the firm. Financial accounting aims to satisfy the information needs of decision makers outside the firm, such as shareholders, creditors, and taxing authorities. Types of decisions: whether to invest in the firm, lend money, calculate taxes owed. Information needs: differ across users, not cost effective to produce specific information, confidentiality issues. Solution: comprehensive reports (financial statements, defined rules (gaap) and guidelines by organizations such as the ias, statements issued at regular intervals. Information needs: differ across users, need specific data for the smaller decisions (could be in the form of financial statements, might need both financial and non-financial data. Solution: decision specific data produced, no pre-set rules for how to process, produced as needed. Companies that have strong management control system do better.