Final answer:
The violation is the failure to prepare financial statements for external users for over three years. This can have legal and financial consequences.
Step-by-step explanation:
The violation here is the failure to prepare financial statements for external users for over three years. Financial statements are important documents that provide information about a company's financial performance and position to external stakeholders such as investors, creditors, and regulators.
By not preparing financial statements for external users, Atwell Corporation is violating accounting principles and regulations. This can lead to potential legal and financial consequences, as well as a loss of trust and credibility from stakeholders.
Examples of financial statements that should be prepared for external users include the income statement, balance sheet, and cash flow statement. These statements present an overview of a company's revenues, expenses, assets, liabilities, and cash flows, providing valuable information for decision-making.