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

Question

Quizplus · Accepted Answer

While independent audits are important for financial accounting, management accounting does not necessarily require independent audits. The focus of management accounting is on providing information and analysis to internal decision makers, rather than on external reporting. However, management accounting systems can still be subject to internal audits or other forms of evaluation to ensure their accuracy and effectiveness.

Management Accounting Requires Independent Audits of the Firm's Books