Explanation:

The dual aspect concept states that every business transaction requires recordation in two different accounts. This concept is the basis of double entry accounting, which is required by all accounting frameworks in order to produce reliable financial statements. The concept is derived from the accounting equation, which states that:

Assets = Liabilities + Equity

The accounting equation is made visible in the balance sheet, where the total amount of assets listed must equal the total of all liabilities and equity. One part of most business transactions will have an impact in some way on the balance sheet, so at least one part of every transaction will involve either assets, liabilities, or equity.

If management wants to have its financials audited, it must accept the dual aspect concept and maintain its accounting records using double-entry accounting. This is the only format that auditors will accept if they are to issue opinions on financial statements.