Accountants and companies have responsibilities for maintaining accurate records of financial transactions and accounts.

Companies must maintain accurate records and accounts, for the sake of reporting to investors, regulatory agencies, and the IRS. Accountants are the professionals trained in the appropriate methods for maintaining these records. They must make every effort to impartially adhere to the law and to accounting standards with regards to the records and documents for which they are responsible.

Individual decentralized departments within a business must bear responsibility for accurately maintaining and reporting their financial accounts, and this is known as responsibility accounting, wherein each department is a “responsibility center”.

Accountants themselves are expected to conduct business with impartiality and competence, to preserve client confidentiality, and to disclose any conflicts of interest. This professional code of conduct is set by the AICPA.

What is GAAP?
What is Due Diligence?