Auditing, Reasoning Systems, Reporting Frameworks, and Accounting Policy Risk: A Response to Alexander

Abstract

Accounting policy risk , Accounting risk , Auditing theory , Fairness in financial reporting ,

Principles‐Based Reasoning about Accounting Estimates

“…The issue can perhaps best be summarized as accounting for uncertainties of future events in some “reasonable” manner. This is increasingly being recognized as a conceptual framework issue of financial reporting (e.g., see Alexander, , and Smieliauskas, Craig, and Amernic, , from an accounting risk and accounting theory perspective). This is also an issue that relates to fairness of presentation.…”