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Every major corporate has several accountants working for them and they are well paid, they do a really important task of making balance sheets and profit and loss statements, these statements are then passed on to shareholders of the company and this is how the whole process works. Following is an example of how some people manipulate balance sheets to earn money.
Satyam an Indian company was involved in a huge accounting fraud and it was later realized that the company had prepared several misleading reports because of which several shareholders held on to their shares and they also made a lot of profit because new share holders were very impressed with their reports, this is how important accounting really is. One misleading report and everything can change. To conclude it is very fair to say that accounting is really important and a company must have ethics and declare their results properly. Transparency in business is extremely important, a transparent organization will never dupe its shareholders and it will also attract new shareholders unlike Satyam, to conclude it is very fair to say that accounting is very
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