In financial transactions, trust is an essential ingredient. The financial reporting process helps people to create trust. However, these financial statements have to be trusted. The financial reporting process is a mean of increasing the trust placed by people in the entities which they deal through the financial statements which are prepared by accounting profession. This paper will discuss the accounting principles and theories, the creation of accounting governing organization, and public perception of CPAs …showed first 75 words of 1544 total…

…showed last 75 words of 1544 total…R.I. & Pashkoff, P.H. (2002, October). Regulations under the Sarbanes-Oxley Act. Journal of Accountancy, 194(4), pp. 33-36. Schneider, D.K., May, G. S. & Shaffer, D.R. (1993, Spring). On narrowing the credibility GAAP: Has the Financial Accounting Standards Board (FASB) enhanced the credibility of Generally Accepted Accounting Principles (GAAP)?. Journal of Applied Business Research, 9(2), pp. 76-77. Touche Ross & Co (1988). Ethics in American Business. New York: Touche Ross & Co., pg. 7.