BUSINESS LAW IN ACCOUNTING

 Accounting is the system of recording, reporting, and verifying financial information for individuals and businesses, including income, expenses, value of assets, and so on. However, Business Law I, takes what is normally known of accounting and moves into another arena, one which includes civil and criminal liabilities, contract law, ethics, and the Sarbanes-Oxley Act of 2002. By establishing the basics in Business Law, accountants are able to understand the risks of their particular profession. Accountants are faced with civil and criminal liabilities which are based on the accountant’s ability to do his or her job effectively and legally.

Accountants face civil liabilities when they do not complete the work satisfactorily to what was agreed to. Even “Codes of Ethics” urge accountants to not agree to do work that they know they do not have the knowledge or time to complete. Competency is a key element to being a successful accountant, and not meeting competency goals can cause problems for young accountants entering the