People need to be able to trust the numbers and facts printed on your financial statements and ensure that they are true. This must be verifiable. Free from error. For example, you can always look at a receipt to verify the amount of an expense. As you already know, when you are audited, you must verify all transactions made in your business. Comparable and consistent: Furthermore, comparability concerns the ability of information to be compared with other similar companies, without comparability the accounts would be of little use Frank and Alan (1999). Accepted General Accounting Principles (GAAP) permit certain choices of different accounting methods for depreciation and inventory management. If a company's financial statements have been prepared differently from other companies in the industry, or even prepared differently from previous statements, it is likely that users will not be able to compare statements across companies and over time. Comparability adds a degree of transparency to financial statements by allowing comparisons over time and between