Week 7 Assignment Paz

School: Kennesaw State University - Course: ACC 410 - Subject: Accounting

FINANCIAL REPORTING REVIEW OF THE FEDERAL GOVERNMENT2 Discuss at least three unique characteristics of the federal government that necessitate special accounting and reporting practices, presenting at least one example for each transaction. Unlike most private sector businesses, the federal government and its institutions must respond to a wide range of organizations and people, including elected officials, other governmental units, financiers, capitalists, and citizens who watch and scrutinize its actions. Any kind of surveillance entails data collection and analysis, and this management role is often done out using information provided in government publications. Annual financial reports showing the financial position, cash inflows, and operational performance of a specific accounting period, are one of the most important communication forms. Each government prepares its yearly report in accordance with international specifications established by standards-setting bodies in order to provide users with comparability and uniformity (Bergmann, 2012). Accounting reporting must be both credible and pertinent for realistically well-versed consumers, for the federal government to achieve its accountability aim (Ridder et al., 2015). The financial reports must meet a variety of demands or goals, including short-term financial position, liquidity, budgeting, and regulatory compliance, as well as challenges that have a long- term emphasis on upkeep and capital planning (Kearney et al., 2013). Additionally, the federal government has certain distinctive qualities that demand particular accounting and reporting standards. The breadth of the Federal Government's powers including issuing money, regulating trade, taxing is the first distinguishing feature (CHAPTER 17: Federal Government Accounting, n.d). The nature of the Federal Government's obligations is the second feature (for example Medicare benefits, commitment to implementing social initiatives, loan guarantees, and social security). The federal government's range of operations is the third characteristic (for example Medicare and Social Security, managing supply of money, and defense). The federal government's diversity and variety of resources is the last distinguishing trait (for example, monuments and national parks, military hardware, and gold storages). Because of these various characteristics and functions, federal accounting methods and particular reporting are required. Accurately identify and explain the type of audit performed, the audit opinion issued, and the auditor's reasons for that opinion, on the most recent federal government financial statement.