Differences Between Management Accounting and Financial Accounting - Other Differences

Other Differences

  • There is no legal requirement for an organization to use management accounting but publicly-traded firms (limited companies or whose shares are bought and sold on an open market) must, by law, prepare financial account statements.
  • In management accounting systems there is no requirement for an independent external review but financial accounting annual statements must be audited by an independent CPA firm.
  • In management accounting systems, management may be concerned about how reports will affect employees behavior whereas management concerns are about the adequacy of disclosure in financial statements.

Read more about this topic:  Differences Between Management Accounting And Financial Accounting

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