why do we need standards in thepreparation of the financial statement?

Answer 1

Financial accounting is targeted toward a broad base of external users, none of whom control the actual preparation of reports or have access to underlying details. Their ability to understand and have confidence in reports is directly dependent upon standardization of the principles and practices that are used to prepare the reports. Without such standardization, reports of different companies could be hard to understand and even harder to compare. Without standards users of financial statements would need to learn the accounting rules of each company, and comparisons would be difficult. As a result, there are well organized processes to bring consistency and structure to financial reporting. In the United States, a private sector group called the Financial Accounting Standards Board (FASB) is primarily responsible for developing the rules that form the foundation of financial reporting. With the increase in global trade, the International Accounting Standards Board (IASB) has emerged as a prominent global accounting rule setter and these 2 are now in the midst of a convergence project to bring the 2 sets of standards even closer together.

Answer 2

So people can violate them with impunity and go to jail and then start new companies and repeat

Answer 3

c. all the above