Opinion Issued for Company's Success or Downfall

When accountants issue an opinion on a telephoner's financial statements, they be influencing whether or non the company is able to borrow money, sell natural shares of stock, and recruit new employees. If a negative opinion is issued, one that questions whether or not the company is a going concern and will sustain the next year, the company can actually be ruined

. Stockholders, employees, and banks all suffer. This cannot be taken lightly.

at that place is also the potential of a lawsuit should the opinion be questioned. Accountants must be able to justify their opinion, good or bad, in a court of law to avoid having to pass damages. Here the accounting firm is the stakeholder, and since we are insured against malpractice we are seen as "deep pockets
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