Management accounting requires independent audits of the firm's books.

Question

Quizplus · Accepted Answer

Management accounting does not require independent audits of the firm's books. It is focused on providing information for internal management decision making and does not need to meet audit or regulatory requirements. However, external financial reporting and auditing do require independent audits to ensure the accuracy and reliability of financial statements.

Management Accounting Requires Independent Audits of the Firm's Books