What are audited financial statements?
In the framework of the financial liability, which most entities provide to investors, members of the Board of Directors and voters, the use of audited financial statements is common. These statements are in principle simply accounting documents prepared by certified public accountant (CPA) on behalf of a business or non -profit organization.
The source documents for audited financial statements are usually provided by organizations that want the auditor to prepare financial statements. This will often include a wide range of documents such as information on due and receivables, cost reports, budgets, and any other type of financial record holding. The accountant holds these different financial statements, evaluates and refers to the cross -made and provides a professionally prepared statement that the organization can then introduce to the parties.
Audited financial statements usually include a document that is marked as an opinion. Accountant is a responsibility to provide either an unskilled opinion nEbo qualified opinion. In principle, the unskilled opinion states that in the review of documents submitted by organizations, the accounting agreed to the methods used to prepare these documents. The accountant actually states that the audit is accurate and complete.
By rendering a qualified opinion, the accounting suggests that it does not comply with the methods used to prepare supporting financial documents. This does not necessarily mean that the accountant thinks something unethical. However, this could mean that accountants have found cases where expenses should be assigned to another category, or in line items, some errors have been found, such as transposed numbers.
once in a great time, you are accounting to bring your opinion. This may mean that the records delivered were not sufficient to prepare the right statements or that there were a number of questions that would have to be resolved before it wouldThe accountant could assess the accuracy of the information provided. In general, if the accountant refuses to issue an opinion, the organization must rework their internal accounting procedures in order to function according to the usual and correct accounting standards.
Audited financial statements are often prepared annually and are presented to persons or groups who are permanently interested in the organization. Businesses usually make them accessible to investors, upper level management and board of directors. Non -profit organizations may decide to share statements with members, operating personnel, key managers and other members that exist in the organization, in which government body exists.