Summary
In this section, we learned about the critical role of financial reporting and disclosure in corporate governance. It highlights the importance of transparency for building trust, enabling informed decision-making, and reducing fraud. Key financial statements—such as the balance sheet, income statement, and cash flow statement—are discussed, along with the essential role of auditors in ensuring accuracy and compliance. Regulatory requirements, including International Financial Reporting Standards (IFRS) and Generally Accepted Accounting Principles (GAAP), guide financial disclosures. Ethical issues, such as earnings management and fraudulent reporting, are also addressed, underscoring the need for integrity in financial practices.