Financial Information and its Users for Auditors -myassignmenthelp

Question: Discuss about theFinancial Information and its Users for External Auditors. Answer: Information is power, this statement basically explains how vital awareness of something or a clue on an issue is important in decision making. AASB 101 and 1057, as well as all those regulation giving guidelines on disclosure and presentation of financial information likewise, paraphrases the need to access information. Financial information refers to all the data and records informing or communicating any relevant and material info that may be usable to all its users. Any information that does not suit its users is termed as irrelevant and obsolete hence tasking the parties involved in the preparation and rely on information to be watchful on the materiality of it to the users. Users of information are either classified as internal or external depending on how proxy they are to the firm or the need purpose of the info. Internal users include the managers, employees, directors, and shareholders while external users include suppliers, tax departments, external auditors, customers and both current and potential investors. Shareholders, managers, and directors as well as both potential and existing investors uses information for decision making i.e. management accounting Parra(2018,Pg 100) unlike this other identical users who have different needs. According to a research conducted at Edith Cowan University in Australia it clearly shows that Australian government regulatory authorities likewise uses accounting information to measure the level of compliance in the private sectors as well as plan for their means of allocation and provision of services. All Australian regulatory authorities likewise use the info to ensure that the minority interest of the shareholders is protected Collier(2015, Pg 30). The Australia tax department likewise uses the info to know whether firm complies with honoring and paying its utilities at the current rates so as to avoid budget revenue shortfalls. A customer in Australia is likewise provided with the info so as to be able to measure whether the firm is able to provide consistency in the provision of its products at fair price and at good-quality Warren(2018, Pg 12). Finally, the public or rather Australian citizens needs the info to evaluate how firms fairs in provision of social corporate responsibility as well as its evaluation of the firms going concern on future sustenance of job security Atkinson(2012,Pg 210). Information is therefore very important to all the above users and it should be disclosed in totality as long as its material to the users. All financial information should be provided to the users upon request and if possible it should be displayed on the company website so as to control blames and liability in case of loss by all parties . References; Atkinson, A.A., Kaplan, R.S., Matsumura, E.M. and Young, S.M., 2012. Management accounting: Information for decision-making and strategy execution. Economic Horizons, 14(3), pp.209-211. Collier, P.M., 2015. Accounting for managers: Interpreting accounting information for decision making. John Wiley Sons. Parra, D., 2018. The faithful representation and its influence on the confidence of users of financial information. ACTUALIDAD CONTABLE FACES, 21(36), pp.96-115. Warren, C.S. and Jones, J., 2018. Corporate financial accounting. Cengage Learning.