Generally Accepted Accounting Principles The General Accepted Accounting Principles (GAAP) refers to a set of accounting standards that are acknowledged by numerous companies. These principles are set by the Financial Accounting Standards Board. They are used to normalize financial accounting of public companies. These principles are vital for several reasons. They are important to companies and for "those whose stock trades on the stock exchanges" (Raithel, 2005). These standards let investors know of the financial state of the company. They also allow the company to maintain track of its cash flow. Another reason that GAAP is important is for the reason that these standards offer consistency across the companies. When a company follows GAAP, the company becomes comparable financially with other companies that apply GAAP.
Corporate Compliance and Ethics In the beginning, corporate compliance was all about following the written regulations of the company. Now, most companies are trying to mandate a compliance and ethics program. This would offer ethical training to the employees of a company. Most companies are opting to