Adrianna has been hired as an accounting coordinator at a new dermatology office. During a meeting with all staff, she learned that the office had a potential investor that was interested in helping to expand the practice. Adrianna knows that all public corporations are required to issue annual reports. She recalls that these reports can be used by the public to learn about the company’s financial well-being and their internal control procedures. Why is it important for this potential investor to review the practice’s internal control procedures prior to investing in the practice? Write a response of at least 250 words
Adrianna has been hired as an accounting coordinator at a new dermatology office. During a meeting with all staff, she learned that the office had a potential investor that was interested in helping to expand the practice. Adrianna knows that all public corporations are required to issue annual reports. She recalls that these reports can be used by the public to learn about the company’s financial well-being and their internal control procedures. Why is it important for this potential investor to review the practice’s internal control procedures prior to investing in the practice? Write a response of at least 250 words
College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter20: Corporations: Organization And Capital Stock
Section: Chapter Questions
Problem 1EC
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Adrianna has been hired as an accounting coordinator at a new dermatology office. During a meeting with all staff, she learned that the office had a potential investor that was interested in helping to expand the practice. Adrianna knows that all public corporations are required to issue annual reports. She recalls that these reports can be used by the public to learn about the company’s financial well-being and their internal control procedures. Why is it important for this potential investor to review the practice’s internal control procedures prior to investing in the practice? Write a response of at least 250 words
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