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
Famous quotes containing the word differences:
“I don’t know what immutable differences exist between men and women apart from differences in their genitals; perhaps there are some other unchangeable differences; probably there are a number of irrelevant differences. But it is clear that until social expectations for men and women are equal, until we provide equal respect for both men and women, our answers to this question will simply reflect our prejudices.”
—Naomi Weisstein (b. 1939)
“No sooner had I glanced at this letter, than I concluded it to be that of which I was in search. To be sure, it was, to all appearance, radically different from the one of which the Prefect had read us so minute a description.... But, then, the radicalness of these differences ... these things ... were strongly corroborative of suspicion.”
—Edgar Allan Poe (1809–1849)