Private company may have freedom to conduct their business as long as it is not violate the law. They are free to do anything to fulfill their goal, which mostly is to gain as much profit as possible. But company also has a responsibility to the government, to the public and to their stockholders.
As mentioned before, company must fulfill certain rules that are made by the government, and as evidence that the company has fulfilled it; they should give their financial report to the government. The same things happened when it comes to the public. The last, company will have to responsible their performance to the stockholders. This is very important since stock holders are the capital owner so they need to know the recent condition of their company. A person from the company can’t create the financial reporting by himself since it will contain biased information. Accountants, who are neutral party, should make it.
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