Company form of management is the legal form of innovation of capitalism- an artificial person with perpetual succession having rights and liabilities on its own name. It is most powerful institution of the nineteen century that has been transforming the global economy and quality of life of mankind. The principal of accounting converted into accounting standards are intended to create a framework in which the results of the business activities are faithfully and diligently communicated to the readers through financial statements. Such

financial statements must create a confidence in the minds of its users and public at large that the financial strength reflected in these financial statements of the entity reflect the current position. The credibility of the financial statements prepared should be the hallmark of the work done by the accountancy profession.