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ould it be ethical for this company to maintain the accounting records for this company, or...

ould it be ethical for this company to maintain the accounting records for this company, or must they be maintained by someone who is independent of the organization?

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It is ethical for a particular company to maintain its own accounting records. It would be unethical if the records are not maintained in the prescribed manner and are presented in a way to lure the investors fraudulently. A company itself best knows about its transactions , be it very small or very large. A company enters into thousands and thousands or even lakhs of transactions during a year. It would not be appropriate for someone independent of the organisation to maintain the records. There would be greater chances of mistakes.also there are certain confidential information which would come to such other organisation. For proving the records are ethically prepared and are correct, independent audit of the records are done and checked for errors and misstatements. It would not be wise for someone who does not belong to the organisation to prepare all records.

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