With the ever increasing accounting scandals which arise because of revelation of misdeeds, involving multifarious means for misusing or misdirecting funds, overstating revenues, playing down expenses, exaggerating the value of corporate assets or underreporting the existence of liabilities, by trusted executives of large public corporations, the need for accounting and accounting standards cannot be over - emphasized. These scandals normally take place perhaps with the cooperation of the auditors or officials working in different capacities in other corporations or affiliates, thus reflecting the escalating call for an in-depth understanding of the accounting process and interpretation of the financial statements by every one including the people working in organizations at various levels, investors and the other stakeholders