The accounting standards also allow the finance or accounts auditor to track the progress of the company as well as the financial transactions of the company in terms of its investments, its expenses, its inflow and outflow of cash and the apportionment of the funding available to the business.
The fairness and the legality of the actions of a business pertaining to its finances is judged on the basis of its adherence to the accounting principles and their guidelines The ethical methods of conducting and management for the business in the industry are also highlighted by the accounting procedures. The procedures are built in such a way so as to keep set benefit and point of view of the stakeholders of the company as a priority which is linked with the performance of the company.
Due to the presence of the accounting principles as provided by the accounting standards, even the different types of companies like limited liability companies, private owned and state based or government financed business as well as partnerships and sole proprietorships can compare their business performance in the market. Aside from this the accounting standards also provide for the safeguarding of the financial operation of the business