Define accounting quality. What are its core characteristics?  * Explain why accounting quality is essential for a company, specifically focusing on its role in financial decision-making.

Accounting Quality — Objective:The primary goal of this assignment is to instill an appreciation for the importance of accounting quality in underpinning sound financial decision-making. At the conclusion of this assignment, you should be able to discern the characteristics of a high-quality accounting system and its role in ensuring reliable financial reporting and promoting stakeholder confidence. Background:A high-quality accounting system is more than just a record-keeping mechanism; it is an information system that provides the basis for a wide range of financial decisions. The quality of accounting significantly influences the credibility and utility of financial statements, and by extension, the trust stakeholders place in a company. Tasks: 1. Understanding Accounting Quality:  * Define accounting quality. What are its core characteristics?  * Explain why accounting quality is essential for a company, specifically focusing on its role in financial decision-making. 2. Real-World Exploration:  * Identify two publicly-traded companies: one known for its high accounting quality and another that has faced accounting quality issues in the past.  * Briefly describe the history and primary operations of each company. 3. Comparative Analysis:  * Highlight how the company with high accounting quality maintains its standards. What policies, systems, or practices does it employ?  * Discuss the issues faced by the company with accounting quality problems. What were the implications of these issues on its financial decision-making and stakeholder trust? 4. Consequences and Implications:  * Delve into the consequences of poor accounting quality on companies. How does it impact their financial performance, reputation, and stakeholder relationships?  * Conversely, explain the benefits and advantages that companies with high-quality accounting systems enjoy. 5. Recommendations:  * Propose measures that companies can adopt to enhance their accounting quality. Consider both preventative measures and remedial actions for those that have encountered problems.  * Ensure your recommendations are supported by your analysis and findings.