Auditing And Assurance And Financial Statements

One of the most important factors is reliability of financial statements. Reliability is further ensured by audit of financial statements. At last but not least, financial statements should be made in a comparable format either with previous periods or with the competitors.

There are three kind of financial statements for companies which the content reflected different information. Among them, the first is the balance sheet, this statement reflects the financial situation of enterprises. For example, some of the listed companies wants to reflect good financial position in the statement, they will want to increase total assets, decrease accrued total liabilities, and then of course increase owners ' equity, making investors mistakenly believe the company has great investment value, thereby misleading public opinion and investors. Beside the balance sheet the other two financial statements are the income statement and cash flow statement. These two statements reflect the business situation of enterprises. The income statement is an important indicator to measure the performance of listed companies, it is closely related to the allotment and the profit. Therefore, in order to increase the profits of listed companies, they will have to Increase revenue, earnings, decrease expenses, costs and losses (Temte, 73). It helped increase tax evasion, embezzlement and other economic criminal activities. A large number of cases being investigated, all related to the accountants making the fake accounting entries. Therefore, the accounting credibility loss has restricted the development of the market economy. In a business, accountant often times handle the tax problem, so if

The purpose of Part 1 is to perform preliminary analytical procedures. You have been asked to focus your attention on two purposes of analytical procedures:

This report asks the author of this paper to answer to several questions pertaining to the demise of One.Tel in 2001. The author if asked to explain the role of external auditors in the collapse and how the expectations of shareholders and stakeholders likely figured into that collapse and the auditor malfeasance that led to the same. The author is asked to give two recommendations regarding the changing of the existing requirements for auditing standards as a means to close the audit expectation gap.

The responsibility of this report is to show an opinion on these financial statements based on the audit for K&S Corporation Group. The audit report complied with the standards issued by the Auditing and Assurance Standards Board (AUASB). The standards comply with ethical requirements in order to plan and make a conclusion for assurance.

When it comes down to applying information about a company financial statement, the accountants are set too many guidelines, rules, and procedures. Everyone should first trust and have confidence that the data is set on good, steady principles. There are plenty of modern day

Summary report that shows how a firm has used the funds entrusted to it by its stockholders (shareholders) and lenders, and what is its current financial position. The three basic financial statements are the (1) balance sheet, which shows firm 's assets, liabilities, and net worth on a stated date; (2) income statement (also called profit & loss account), which shows how the net income of the firm is arrived at over a stated period, and (3) cash flow statement, which shows the inflows and outflows of cash caused by the firm 's activities during a stated period. Also called business financials

2. The two main types of companies permitted to be registered under the Corporations Act are:

Companies gather various information, including financial statements and other reports as a way to track their performance compared to past years. This information is also used to communicate with stakeholders about various topics depending on the reporting style. One type of such reporting is a business unit reporting where organizations gather information about separate divisions of the company to see if each division is functioning properly. There are separate accounts for each segment, so the company can examine if each division is operating at a loss or profit. By creating separate accounts, business reporting provides accurate reports on a company’s performance, based on the accumulation of all division information, for the

Test item costs. The auditors need to know where purchased costs in your accounting records come from, so they will compare the amounts in recent supplier invoices to the costs listed in your inventory valuation.

Accounting Record is documentations which shows the preparation of financial statements and records are normally looked at within audits and financial reviews. This includes things like ledgers, journals, recording of assets and liabilities and other supporting documents such as invoices.

Financial statements are a means of outlining financial activities for a specified business or any other entity. That information is presented in a specified order and represents all activities for that business in a specified accounting period. There are several types of financial statements and these statements tell investors specific information about a company and how it operates. Income statement, balance sheet, owner’s equity section, and a statement of cash flow are very important.

An important function of the accounting field is to provide external users of financial statements with assurance that the financial information being presented is both reliable and accurate. This basic function of accounting is so important that there is an entire field of experts, called auditors, dedicated to assuring its proper performance. Throughout history there have been many instances in which the basic equilibrium between an institution and current/potential investor has been threatened due to a lack of accountability and trust between the two parties. This issue has been the catalyst for many discussions regarding the proper procedures a firm should follow in order to provide

Since reliable financial information is essential for investors and other stakeholders to take adequate decisions, this reliability must be backed by independent review performed by independent and certified auditing firms, which are supposed to verify and certify financial statements issued by a company’s management. If the auditor is not competent and independent from management, the audit of the financial statements loses its credibility (Schelker, 2013, p.295). According to Impastato (2003), because of audit failures, accountants are to blame for investors losing billions of dollars in earnings in addition to market capitalization (as cited in Grubbs & Ethridge 2007).

A company prepares financial statement to provide information about its financial position and performance. This information is in turn used by a wide range of stakeholders (such as investors, banks, customers, suppliers etc) in making economic decisions with respect to respective economic interest in the company. Typically, in terms of ownership by investment in shares of the company, shareholders though own the company but do not manage it. Therefore, the shareholder and other such stakeholders to get comfort in taking sound decision need independent assurance from the auditors that the financial statements reflect true and fair view of the company affairs in all material respects. Hence, in order to enhance the level of