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:
“Quintilian [educational writer in Rome about A.D. 100] hoped that teachers would be sensitive to individual differences of temperament and ability. . . . Beating, he thought, was usually unnecessary. A teacher who had made the effort to understand his pupil’s individual needs and character could probably dispense with it: “I will content myself with saying that children are helpless and easily victimized, and that therefore no one should be given unlimited power over them.””
—C. John Sommerville (20th century)
“The mother must teach her son how to respect and follow the rules. She must teach him how to compete successfully with the other boys. And she must teach him how to find a woman to take care of him and finish the job she began of training him how to live in a family. But no matter how good a job a woman does in teaching a boy how to be a man, he knows that she is not the real thing, and so he tends to exaggerate the differences between men and women that she embodies.”
—Frank Pittman (20th century)