<Li> There is no legal requirement for an organization to use management accounting, but publicly traded firms (limited companies or whose shares are bought and sold on an open market) must, by law, prepare financial account statements . </Li> <Li> In management accounting systems there is no requirement for an independent external review but financial accounting annual statements must be audited by an independent CPA firm . </Li> <Li> In management accounting systems, management may be concerned about how reports will affect employees behavior whereas financial management concerns are about the adequacy of disclosure in financial statements . </Li>

Managerial accounting is primarily concerned with managers and external users