Accounting and Auditing

Accounting and auditing (JEL M4) cover the economics of accounting information and auditing.

Scope

It includes financial reporting, disclosure, the economics of auditing, and the role of accounting in markets.

Sub-topics

• General
• Accounting
• Auditing
• Government Policy and Regulation
• Other

Core questions

• How does accounting information affect markets and decisions?
• Why is auditing needed?
• How do disclosure rules arise?

Key concepts

• Financial reporting
• Disclosure
• Auditing
• Information asymmetry
• Accounting standards

Frequently asked questions

Why does accounting information matter economically?

Because it reduces information asymmetry between firms and investors, affecting capital allocation and governance.