Similiarities Btw Public And Private Sector Accounting?


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The accounting principles are the same in private vs. Public sector accounting, but public companies have additional reporting requirements and the burden of complying with the Sarbanes-Oxley Act.

Public companies are audited more thoroughly since the users of their audited financial statements in the general public who may make investment decisions based on them. Whereas private companies have more limited audits, typically to satisfy the personal requirements of the owners and any lending institutions that they may deal with.

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