Economic process accounting. Full disclosure

In: Systems research and behavioral science: the official journal of the International Federation for Systems Research, Band 21, Heft 6, S. 663-680

Abstract

AbstractRecent economic events may be forcing the current system of public disclosure of financial information to an evolutionary cusp. The current system of disclosure has been developing over the last seven decades. It was born in an effort to introduce governance to markets without interfering with their useful processes. A choice was made against government regulation and for required public disclosure backed by an independent auditor function. The realization of the degree of auditor independence envisioned and needed has been evasive. It now seems necessary to enhance the disclosure aspect of the system to offset the weakness of achievable auditor independence. This article suggests that fairly minor changes in currently used accounting information systems can support public disclosure of the actual measurements taken by accountants on economic processes. These values should be disclosed to support the accountant‐adjusted values, much like a physician's disclosure of medical test results supports his or her diagnosis. Copyright © 2004 John Wiley & Sons, Ltd.